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Cafe Coffee Day(CCD) Case Study

I was shocked by the News that Founder of CCD has committed Suicide.

What was the reason behind it?

According to resources, He was under pressure from a private equity partner and other lenders.

This ultimate blog is dedicated to India’s best coffee brand “CCD” and it’s owner Mr. VG Siddhartha.

I have curated all the information about CCD(Cafe Coffee day).

Cafe coffee day(CCD) was the first-ever coffee chain opened in India.VG Siddhartha was the man behind making coffee popular in a nation of tea-lovers.

Also, CCD owned Asia’s single largest coffee estate and India’s best coffee brand.

It was the one with the tag line ‘A lot can happen over coffee’, Café Coffee Day was the one who touched the hearts of millions of Indian youth, assuring them that all they need is a cup of coffee and a peaceful place to talk it all out!

And so it happened.

India was strictly a tea-loving country.
Let me tell you everything from pin to plane about the brand who successfully made coffee popular in a country full of tea lovers.

HOW CAFE COFFEE DAY(CCD) STARTED

I am sure you have visited CCD every now and then but do you know the history of the cafe coffee brand who brought the coffee culture to India.

During my college years when I started visiting the cafe coffee day, I had no idea about the success story of India’s largest Cafe Coffee chain.

V G Siddhartha from Chikmangaluru district of Karnataka was the man behind changing the beverages culture of India with a variety of drinks and side dishes hard to resist.

Coffee Day Global which is the parent of the Cafe Coffee Day chain was incorporated in 1993.

The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. V.G. Siddhartha opened the first CCD outlet with an initial investment of ₹ 1.5 crores.

Coffee Day Global which is the parent of the Cafe Coffee Day chain was incorporated in 1993.

The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. V.G. Siddhartha opened the first CCD outlet with an initial investment of ₹ 1.5 crores.

Siddhartha happened come across a German business
owner, who was interested in buying coffee beans from him for his “leading
coffee brand in Germany – Tchibo”.

During that brief discussion with the German businessman, he told his story of how his brand had started in a small 10 ft. shop in Hamburg. This inspiring tale of the Tchibo gave Siddhartha an outlook of a different world altogether & opened his eyes and it also gave him a wonderful idea.


Challenges Faced By CCD

Having done with the initial foundation, the major challenge faced by the cafe coffee chain was to make a revolutionary change in the Indian culture where the majority of the population prefer drinking tea rather than coffee.

After the initial struggle, the homegrown cafe chain came a long way, credited with the start of coffee shop culture in India but then it finds itself facing tough competition not just from the international chains such as Costa Coffee, Starbucks or Barista but also from various domestic players and concept cafés.  

How Ccd Overcome Challenges

To stand up against the competition, CCD has built its retail strategy and named it 3As strategy :

Affordability
What worked best for the Indian cafe coffee chain was its combination of aspiration and affordability.

Even as it gave coffee an attractive makeover, CCD’s prices stayed well below its rivals.

Ensuring that it remained the favorite hangout choice for school and college students or young adults on meager paychecks from their first jobs.

Accessibility
It wasn’t just restricted to the metro cities. If there’s one singular claim that Coffee Day can makeover all of its rivals, it is that it took coffee to cities and towns across the country, and offered the same experience everywhere.

They always believe in serving an experience along with the coffee.

They have ensured that the cafes are at an arm’s reach.

Acceptability
Today, coffee is not just seen as a beverage but a social glue that brings people together to relax and unwind.

“Let’s catch up at CCD,” is probably one line most Indians have said or heard at one point or the other over the last two decades.

Marketing and advertising strategies of CCD

As we have discussed above, CCD’s strategic approach was based on the 3 A’s i.e. Affordability, Accessibility, and Acceptability. 3A’s are the significant factors contributing to the growth of the brand. 

Secondly, Digital Marketing has become an integral part of Café Coffee Day’s marketing plan.
CCD’s fan base is overwhelmed with over 5 million fans on its social media pages and consistently engaging customers on Facebook, Instagram, Twitter, Youtube, etc. 

The youth was the key target and early adopters of trends, they also evolved their strategy and became more digital-centric as they engaged with the new age world.

CCD marketing also constantly ensures the continuous active engagements of the consumers, like they conducted the ‘Latte Art Festival’ – where customers were served coffee topped with creative latte art designs.

As CCD goes digital, it is also looking at innovation in user experiences by adopting new technologies to enhance customer service.

SWOT ANALYSIS OF CAFE COFFEE DAY

STRENGTHS
* Products of extremely good quality and taste
* Highest no. Of stores
* High brand equity among the youth
* Vertical integration

WEAKNESSES
* High pricing
* Wrong-site selection
* Lacks strength to maintain the brand

OPPORTUNITIES
* Coffee cafe industry is one of the fastest-growing industry in Asia
* Enter and attract international markets
* Rising income of people

THREATS
* Growing competition from global and local coffee chains
* Growing attrition rate

BUSINESS EXPANSION AND GROWTH

CCD founder V.G. Siddhartha who feared of achieving a target of 500 tonnes, ends up selling 6,500-7,000 tonnes of branded coffee, exports about 28,000 tonnes of coffee and sells another 2,000 tonnes locally each year and has a curing capacity of 75,000 tonnes (largest in the country). Additionally, his cafes attract at least 40,000 to 50,000 visitors per week.

The company, opened its first store in 1996 in Bengaluru, is presently operating 1,740 CCD stores in around 250 cities.

As of 2015; CCD makes revenues worth $450 Million approx., employees 5000+ people, and has 1530 outlets across India, Austria, Czech Republic, Dubai & Karachi.

Other Businesses of CCD

COFFEE DAY EXPORTS

Coffee Day Exports is all about growing, trading, retailing and exporting world-class coffee. It has a heritage of over 130 years.

One of the largest exporters of green coffee in India, since 1999. We also export to the Middle East, Europe and Japan.

Coffee Day Exports has invested in research and development and applied the learning successfully to improve the promotion of various coffee blends and augment its exports.

Visit www.coffeedayexport.com for more details.

COFFEE DAY HOTELS & RESORTS

2008 was a landmark year for Coffee Day Global Limited.

Coffee Day Hotels & Resorts was formed as a subsidiary of Coffee Day Global Limited, the Chikmagalur resort of The Serai was declared open.

Visit www.theserai.infor more details.

MILESTONES AND AWARDS ACHIEVED

  1. Café Coffee Day won the “Times Food Award” under the category of “Best Coffee Bar” in 2007
  2. Café Coffee Day won the Burrper’s Choice Award by users of burrp.com in 2008.
  3. Coffee Day Global won an award for “Retailer of the Year” by  Asia Retail Congress 2009
  4. Café Coffee Day won the Indian Hospitality Excellence Award in 2010”
  5. Café Coffee Day was ranked as 26th Most Trusted Service Brand in India and by Brand Equity (Economic Times) in 2012
  6. Café Coffee Day won the Best Coffee Bar Award in 2012
  7. Café Coffee Day was awarded “The NCPEDP – Shell Helen Keller Award 2013” by National Centre for Promotion of Employment for Disabled People.
  8. Coffee Day Global got awarded for “Best Customer Service in Café Restaurant” by Star Retailer Awards 2013
  9. Café Coffee Day won the Brand Excellence Award in the retail sector in 2013
  10. Coffee Day Global was awarded the bronze prize by the Coffee Board of India for being the third-best exporter of green coffee in  2012
  11. Coffee Day Global was awarded as “Retailer of the Year” for the retail excellence by ABP News in 2014
  12. Café Coffee Day was ranked as 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India under the category of “Food Services” in Indian 2014
  13. The Promoter, Mr. V G Siddhartha was awarded ‘ET Retail Hall of Fame’ for his contribution to the growth in the retail sector in 2014
Cafe Cofee Day
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