Café Coffee Day (CCD): A Case Analysis
14 Pages Posted: 3 Sep 2011
Date Written: September 1, 2011
The coffee market in India has been growing due to the demand for ready to drink coffee and has become a part of an individual’s daily consumption basket. Due to changing cultures, consumers are becoming aware of domestic and foreign brands, which are boosting the consumption levels.
The export promotion schemes and other subsidies by the GOI, and increasing trend of eating out coupled with the rising share of young population has driven the market. Well-established coffee shop chains, such as Cafe Coffee Day (CCD) and Barista, enhanced their pan-India presence in the latter part of the review period. In 2010, Cafe Coffee Day and Barista had 970 and 200 stores, respectively, and they aim to continue expanding in the next few years. Meanwhile, several relatively new players, such as Costa Coffee, Coffee Bean, Gloria Jean’s and Java Coffee, are trying to establish a footing in Indian coffee retailing. Both these factors drove on-trade consumption of fresh coffee beans in 2010, with volumes growing by 12%. On-trade sales have emerged as the primary sales channel for fresh coffee beans, in the absence of any appreciable off-trade consumption.
Keywords: Cafe Coffee Day, case, competition, strategy, innovative practices
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