Marketing Mix Cafe Coffee Day (CCD) and 7Ps (Updated 2024)

The Marketing mix of Cafe Coffee Day analyses the 7Ps of Cafe Coffee Day which includes the Product, Price, Place, Promotion, people, physical evidence and process of Cafe Coffee Day. The leading coffee chain worldwide, Cafe Coffee Day, has several products that appeal to the Indian audience, and it has a very affordable price for the upper middle class of India. The promotions are unique, and numerous retail outlets are growing in number across India. This article discusses the whole marketing strategy and mix of Cafe Coffee Day.

About Cafe Coffee Day

• Type: Cafe beverage chain
• Industry: Food and beverage
• Founded: 1996
• Founder: V. G. Siddhartha
• Headquarters: Bengaluru, Karnataka, India
• Area served: India, Austria, Czech Republic, Malaysia, Nepal, and Egypt
• Key people: V. G. Siddhartha (Founder and former chairman) and Malavika Krishna (Chief executive officer)
• Number of employees: Over 12,000+ worldwide

Cafe Coffee Day Product Strategy

Café Coffee Day’s product mix constitutes a wide range of products that appeal primarily to Indian coffee and snack lovers. Products have a decided Indian taste – be it food or coffee. Most of the eatables have been adapted to meet the Indian taste buds, like samosa, biryani, masala sandwich, tikka sandwich, etc. Thus, they have been trying to capture the Indian taste and classic coffee. The bestselling item in summer is frappe, a blended coffee and ice cream. The young people favor it. In winter, it is cappuccino. Their merchandising includes funky stuff like t-shirts, caps, etc.

The new Product Mix of Café Coffee Day in 2024 is as follows (Source).

1. Beverages: Coffee: Various coffee drinks, including espresso, cappuccino, latte, Americano, and mocha, among others. They also offer flavored coffees and seasonal specials; Tea: A selection of black, green, and herbal teas, along with flavored teas like masala chai, lemon tea, and more; Cold Beverages: This includes frappes, smoothies, iced teas, lemonades, and cold coffee variants; Hot Beverages: Apart from coffee and tea, hot chocolate, and other warm drinks are available.

2. Food Items: Snacks: A range of light snacks such as sandwiches, croissants, wraps, and pastries; Desserts: Cakes, brownies, muffins, and cookies to pair with your coffee or tea; Meals: Some outlets offer fuller meal options like biryanis, bowls, and plated meals, particularly in more significant or high-traffic locations.

3. Merchandise: Coffee and Tea Powders: Packaged coffee and tea that customers can buy to enjoy at home; Accessories: Coffee mugs, travel cups, and other branded merchandise.

4. Seasonal and Limited-time Offerings: CCD often introduces seasonal specials, festival-themed treats, and limited-time products to keep the menu fresh and exciting.

The product mix at CCD is designed to cater to the tastes of a broad customer base, from those looking for a quick caffeine fix to those seeking a leisurely meal or snack. Additionally, CCD adjusts its product offerings based on customer feedback, market trends, competitors, and regional preferences, which means the availability of certain items may vary by location and time.

Cafe Coffee Day Place Strategy

The strategy CCD has adopted is to place a cafe in every possible location where some business can be generated. This is a prime factor in determining the success of a retail chain. Café Coffee Day looks to cater to expand its target market with strategically located outlets.

Café Coffee Day (CCD) employs a strategic approach to choosing its locations, ensuring accessibility and visibility to a wide range of customers. Here are five key points that highlight CCD’s place strategy:

1. Strategic Location Selection: CCD outlets are strategically located in high-traffic areas such as urban commercial districts, malls, high streets, and near educational institutions to attract a large footfall of young adults, professionals, and students.
2. Expansion into Tier 2 and Tier 3 Cities: Beyond metro cities, CCD has expanded its presence into Tier 2 and Tier 3 cities, tapping into the growing demand for café culture in these areas and capturing a broader market base.
3. Presence in Travel Hubs: CCD has placed its outlets in airports, railway stations, and highways, catering to travelers and commuters looking for a quick refreshment stop.
4. Ambiance and Comfort: The location strategy is complemented by the café’s ambiance. CCD outlets are designed to offer a cozy and inviting atmosphere that encourages customers to spend more time, aiming to enhance the overall customer experience.
5. Leveraging Technology for Convenience: CCD has integrated technology into its place strategy by offering services like free Wi-Fi in its cafes and enabling app-based ordering. This attracts a tech-savvy crowd and enhances customer convenience, making CCD a preferred hangout and work spot.

CCD’s place strategy combines careful location selection, market expansion, and leveraging technology resources to provide accessibility, convenience, and a pleasant customer experience.

Cafe Coffee Day Pricing Strategy

Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive its profit through a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.45 to Rs 80. Since it started its operations, there have been only minor changes in the pricing policy of Café Coffee Day. The changes have been more due to the government taxes than anything else.

Café Coffee Day (CCD) employs a multifaceted pricing and distribution strategy that balances affordability with perceived value, aiming to cater to a broad demographic while maintaining competitive positioning in the market. Here’s an in-depth look at CCD’s pricing strategy.

1. Psychological Pricing: CCD cleverly uses psychological pricing to make its offerings more appealing to customers. By setting prices just below a whole number (e.g., ?99 instead of ?100), CCD taps into consumer psychology to create a perception of value, encouraging more purchases.
2. Competitive Pricing: In a market crowded with international chains like Starbucks and local cafes, CCD positions itself competitively by offering products at a price point that undercuts high-end coffee chains while providing a superior experience to local coffee shops. This strategy helps CCD attract a broad customer base looking for quality offerings at reasonable prices.
3. Product Line Pricing: CCD has mastered the art of product line pricing, offering a wide range of products at different price points. This approach caters to various customer segments, from those seeking premium, exotic coffees to customers preferring a simple, affordable cup of joe. The tiered pricing strategy within their product line maximizes revenue by catering to different willingness-to-pay thresholds.
4. Value-based Pricing: Understanding its customers’ value perception, CCD often integrates value-based pricing elements. It focuses on the overall experience rather than just the product, emphasizing the ambiance, convenience, and service quality. This aspect justifies a slightly higher price point for some products, as customers are willing to pay more for the added value of the experience.
5. Promotional Pricing and Bundling: CCD frequently employs promotional pricing strategies, including discounts, combo offers, and seasonal specials, to attract customers and increase sales volume. Bundling products (e.g., a coffee and pastry at a reduced price) not only offers value to customers but also encourages the trial of new products and increases average purchase size.
6. Dynamic Pricing: Leveraging technology, CCD sometimes adopts dynamic pricing in specific locations or for online orders, adjusting prices based on demand, time of day, or special promotions. This flexible pricing approach helps CCD maximize profits during peak hours and increase sales during off-peak times.
7. Loyalty Programs: Introducing loyalty programs and apps allows CCD to offer personalized discounts and rewards to frequent customers, enhancing customer retention and encouraging repeat business. The data collected through these programs also provides insights into customer preferences, aiding in more targeted and efficient pricing strategies.

CCD’s pricing strategy is a sophisticated blend of understanding consumer psychology, competitive market positioning, and leveraging technology for dynamic pricing. By focusing on value creation and customer satisfaction, CCD has established itself as a leading coffee chain that appeals to many consumers, from students to professionals, seeking quality coffee experiences at reasonable and affordable prices everywhere.

Cafe Coffee Day Promotion Strategy

CCD is involved in all the areas of serious consumer passion like:

1. Television: Café Coffee Day held a contest around a popular Zee English program called Friends. All six lead characters are shown visiting a coffee shop often. They have tied up with Channel [V] ‘s Get Gorgeous contest.
2. Tie-ups: Besides, Café Coffee Day also ties up many youth brands. So they have a contest with Levis, another with Scooty, Liril, and the latest with Airtel Friends.
3. Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na
4. Sales Promotion: Café Coffee Day uses a unique ‘Café Citizen Card’ to reward Café Coffee Day’s customers. It is a loyalty program to gain new customers and retain the existing ones.

Some Recent Video ads and Print ads for Café Coffee Day are:

Cafe Coffee Day People Strategy

People at Café Coffee Day believe that “People are hired for what they know but fired for how they behave.” Motivation and personal skills are emphasized. Their employees are like friends to the customer but also know about the international standards of hygiene, cleanliness, and personal grooming.

“People” are critical in the service marketing mix, especially for customer-centric businesses like Café Coffee Day (CCD). The “People” component encompasses the staff, employees, management, and everyone involved in delivering and consuming the service. Here’s how CCD excels in this aspect.

1. Employee Training and Development: CCD strongly emphasizes the training and development of its employees. Baristas and staff undergo extensive training programs on coffee knowledge, customer service, and operational efficiencies. This ensures that customers receive a high standard of service consistently across all outlets. The training programs also include developing soft skills, ensuring employees engage positively with customers, and enhancing the overall customer experience.
2. Customer-centric Staff: The success of CCD hinges on its customer-centric staff. Employees are encouraged to develop a friendly rapport with customers, making CCD outlets a welcoming space for social gatherings, work, or relaxation. The staff’s ability to cater to customer needs with a smile and provide personalized service is significant in building customer loyalty and satisfaction.
3. Teamwork and Staff Morale: CCD fosters a culture of teamwork and high staff morale. Recognizing that happy employees lead to happy customers, CCD invests in team-building activities, recognizes employee achievements, and provides a supportive work environment. This approach ensures that staff members are motivated and committed to delivering the best possible service to every customer.
4. Diversity and Inclusion: CCD’s workforce reflects diversity in age, gender, and cultural backgrounds. This diversity is a strength that allows CCD to cater to a wide range of customer preferences and foster an inclusive environment where all customers feel welcome.
5. Feedback Mechanisms: CCD values customer feedback and has established mechanisms through which customers can share their experiences directly with the company. This feedback is taken seriously to address any immediate customer concerns and inform ongoing training and development programs for staff, ensuring continuous improvement in service delivery.
6. Management and Leadership: The leadership and management team at CCD play a crucial role in shaping the company’s culture and service standards. From strategic hiring decisions to creating policies prioritizing customer satisfaction, the management’s commitment to excellence in service is evident in every aspect of CCD’s operations. Leadership actively ensures that the company’s values are reflected in every employee’s action, creating a cohesive and customer-friendly service environment.

Cafe Coffee Day Process Strategy

The ordering and delivery process in CCD was earlier based on self-service. But now, in most coffee shops, the waiter comes, takes away the money for the order, and delivers the order to the table.

The “Process” element of the service marketing mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Café Coffee Day (CCD), the process involves all the steps customers and staff go through, from ordering to delivery of service and is designed to ensure efficiency, customer satisfaction, and a seamless coffeehouse experience. Here’s how CCD excels in managing its service processes:

1. Streamlined Ordering System: CCD employs a simplified ordering system, both in-store and online, to minimize wait times and ensure accuracy in order taking. In-store, the process is designed to be quick and efficient, with clear menus and well-trained staff to assist customers. CCD’s app and website offer an intuitive ordering experience for online orders, allowing customers to place orders in advance for pickup or delivery, thus reducing in-store congestion and wait times.
2. Integrated Supply Chain Management: The backbone of CCD’s efficient service delivery is its robust supply chain management. This includes everything from sourcing coffee beans to inventory management in outlets. By ensuring that all products are available when needed and managing stock levels efficiently, CCD can provide consistent service to customers without delays or shortages.
3. Quality Control Processes: Quality control is central to CCD’s process strategy. From selecting coffee beans to training baristas in brewing techniques, CCD has implemented stringent quality control measures to ensure that every cup of coffee meets its high standards. Regular audits and feedback loops are part of the process, allowing continuous improvement.
4. Customer Feedback and Resolution Process: CCD has established a transparent process for collecting and addressing customer feedback. This includes comment cards in outlets, a customer service hotline, and digital feedback mechanisms through the CCD app or website. Feedback is analyzed for operational improvements, demonstrating CCD’s commitment to customer satisfaction and service excellence.
5. Employee Performance Management: The process extends to how CCD manages and evaluates employee performance. Regular training, performance reviews, and feedback ensure employees are supported and motivated to provide excellent service. This also helps identify improvement areas in service delivery and operational efficiency.
6. Use of Technology for Enhanced Service Delivery: CCD leverages technology not just for ordering but also across its service processes, including payment systems, customer relationship management (CRM) software, and operational analytics. This technological integration helps personalize the customer experience, optimize operational efficiency, and provide data-driven insights for continuous improvement.
7. Sustainability Initiatives: Sustainability is becoming an integral part of CCD’s process, focusing on reducing environmental impact through waste management practices, energy-efficient operations, and sourcing eco-friendly materials. This commitment aligns with global sustainability goals and appeals to environmentally conscious consumers.

Cafe Coffee Day Physical Evidence Strategy

The “Physical Evidence” element in the service marketing mix refers to the environment in which the service is delivered, where the firm and customer interact, and any tangible commodities that facilitate the performance or communication of the service. For Café Coffee Day (CCD), physical evidence is crucial to their marketing and advertising strategy, significantly shaping customer perceptions and experiences. Here’s how CCD leverages physical evidence in its service marketing mix.

1. Ambiance and Interior Design: CCD outlets are designed to provide customers with a warm, inviting, and comfortable environment. The distinctive red and purple branding is evident throughout their interior design, creating a cozy and relaxed atmosphere. Comfortable seating arrangements, ambient lighting, and music are carefully selected to enhance the customer experience, encouraging patrons to linger and enjoy their time at the café.
2. Cleanliness and Hygiene: Maintaining high standards of cleanliness and hygiene is essential for CCD, especially in the food and beverage industry. Visible cleanliness in the seating areas, counters, and restrooms proves CCD’s commitment to customer health and safety, reinforcing trust and confidence in the brand.
3. Branding Elements: The consistent use of branding elements across all physical touchpoints, including cups, napkins, menus, and packaging, reinforces CCD’s brand identity. These tangible elements serve as reminders of the brand and contribute to a cohesive customer experience, from the moment they enter the café to when they enjoy their coffee.
4. Technology Integration: Integrating technology into the physical space, such as free Wi-Fi, digital menu boards, and self-service kiosks, provides physical evidence of CCD’s modernity and focus on customer convenience. These technological touchpoints enhance the overall service experience, meeting the expectations of a digitally savvy customer base.
5. Merchandise and Product Display: CCD often sells branded merchandise and packaged coffee products within their outlets. The display and availability of these items not only serve as an additional revenue stream but as tangible evidence of the brand’s lifestyle appeal and quality. These items allow customers to take a piece of their CCD experience home.
6. Signage and Exterior Design: CCD outlets’ exterior design and signage are instantly recognizable and prominently displayed with the brand’s logo. This visual identity makes CCD outlets easy to locate and serves as an invitation to customers, signaling the quality coffee experience that awaits them inside.
7. Service Delivery Process: The visible aspects of service delivery, such as the preparation of coffee by skilled baristas, also constitute physical evidence. Watching a barista prepare a coffee carefully can enhance the product’s perceived value and the overall service experience.

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