Cafe Coffee Day Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Problem Diagnosis

Café coffee day is trying to establish itself within the markets of the tea drinking nation, India. Although an avenue has been opened up to create a coffee drinking culture, it is already infested with fierce competition. The problem would rise when Café Coffee Day CCD would try to carve out a place within the existing competition and be able to establish and retain a large consumer base. The competition includes:

• Barista Lavazza,

• Gloria Jean’s Coffees,

• Au Bon Pain

• Starbucks

• Bru cafes

Furthermore, a coffee culture relies primarily on developing brand associations that the customer can relate with the café and perceive in the light that differentiates it from its competitors. Their marketing mix in terms of the new market and competition had to be remodeled and made up to par with the entering competition in the market. The associations that they would have to develop should reflect the perceptions and ideas that the customers have related to the café itself and the café culture, they should be not very different from the associations being provided by the competitors, theses associations should also create a brand strategy that would make café coffee day stand out from the other existing brands in the market. Lastly, the café should make sure that the generic associations related with the coffee culture in general should also be included within them but with their own flavor.

Analysis

Company Profile

Café Coffee Day initially started its business in India with a café that was initially offered cappuccino. To gain maximum competitive advantage Café Coffee Day has made numerous successful attempts to grab the interest of the local customers by offering them a variety of native products as well. Moreover, the company also introduced a variety of games to provide customers a source of entertainment in the café’s. Enhancing the product portfolio, Café Coffee Day also offered a specialty coffee to their consumers. In addition to that, Café Coffee Day is also offering several types of desserts that include ice creams, pastries and other valuable items.

Moreover, for the highly religion oriented people, Café Coffee Day is also offering a pure vegetarian food as well. Both these famous brands actually established their stores or outlets in intensely populated and crowded ranges of their respective target markets, i.e. route stations, airplane terminals, colleges, shopping malls, in office blocks and several high-end road corners. They had an extensive focus on the conventional families of India throughout their entire retail outlets and marketplaces. On the other hand, Café Coffee Day was diverse in one and only perspective that it was additionally offering its products in several provincial zones of the country too by nearby mother and pop merchants, which was also known as Kirana.

The primary aim of the Café Coffee Day is to go with a backward integration strategy in its value chain process that a company can initiate from the coffee beans from Bangalore. By choosing premium quality of coffee beans, the company can prove itself to be one of the finest quality coffee providers in town. Furthermore, it gives a consistency in taste that will be gained by using raw materials from one source every time. In addition to this, the brand image of the company is more than its rivals like Barista and Nescafe. One of the main competitive advantages for the company is that consumers all over India can easily find the Café Coffee Day outlet in comparison with its other competitors.

Internal Analysis

The internal analysis will describe the company’s strengths and weaknesses of the company and will also identify the threats and opportunities for the company using SWOT model.

Strengths

The major strengths of the company include its nationwide presence in around 140 cities and with more than 1100 outlets. Furthermore, the company is selling products at very affordable prices with aiming to target high income based consumers. Adding more to its strengths is the divisions in which company is operating and is regarded as the largest exporter of coffee in India.

Moreover, the company is involved in backward integration, which saves them a considerable amount of cost. On the other hand, the ambiance, taste, quality and affordability are also regarded as the major strengths of CCD............................

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