“Customer Relation Management initiation to improve sales at Café Coffee Day”
Executive Summary Introduction: Café Coffee Day is a division of India’s largest coffee conglomerate, Amalgamated Bean Coffee Trading Ltd (ABCTCL), popularly known as Café Coffee Day. ISO 9002 certified company. CCD has become India’s largest and premier retail chain of cafes with 552 cafes in 90 cities around the country. Its different division includes: •
Coffee Day Fresh n Ground
•
Coffee Day Xpress
•
Coffee Day Take away
•
Coffee Day Exports and Coffee Day Perfect division
About project: Topic “Customer Relation Management initiation to improve sales at Café Coffee Day” The project also includes how to retain the existing customer. It has also seen which activities inspire the customer to visit Café Coffee Day more often. The study was made know whether customers are satisfied about Café Coffee Day or not. Because satisfied customers will be the loyal customers. It has also seen which things are not going good for further improvement. Objective: i)
To know the importance of CRM in Café Coffee Day.
ii)
To introduce CRM strategy in Organization.
iii)
To know whether CRM helps to build strong relation with customer.
iv)
To know whether CRM helps to retain the customer.
v)
To identify area for further CRM improvement
Findings: •
Students visit Café Coffee Day more
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“Customer Relation Management initiation to improve sales at Café Coffee Day” •
Age group between “20-25” visits Café Coffee Day more. They are the potential customers.
•
39% of the respondents visit Café Coffee Day once in week and 37% of the respondent visit café Coffee Day once in month.
•
57% of the respondent visit CCD refreshment Purpose
•
49% of the respondent feel coffee and Snacks influence them to visit CCD
•
63% of the respondent were not aware of the promotional activity Conducted by CCD
•
76.8% of the respondent would like to know about promotional activity.
•
77% of the respondent would like to be part of any future event in CCD
•
78% of the respondent Satisfied about service
•
66% of the respondent feel event conducted by CCD influence them to visit CCD
•
73% of the respondent feel Staff of CCD is friendly
•
36% of the respondent said promotional activity influences them, 34% said DJ shows influences them.
Promo: •
53.6% of the customer rated prom was good and 35.7% rated promo was excellent.
•
89% of them expect more events in future.
•
96.4% of the respondent satisfied about promo.
Suggestions and Recommendations 1.
Organize at least few promotional activities in order to build good relation with
customer 2. Give advertisement about promotional activity
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“Customer Relation Management initiation to improve sales at Café Coffee Day” 3. Maintain Customer data base. 4. Wish the regular customer for New Year or for any festivals through greeting card or SMS or through gift. This will increase the loyalty of the customers. 5. Increase number of couches and place 6. Play the good music 7. Quick Service 8. To increase sales Café Coffee Day can also have corporate tie ups within the city. 9. Provide scratch card to the customers. 10. Identify the regular customer of the Café Coffee Day and provide them cards through they can get some discount. Through this Café Coffee Day can retain their existing customer.
Table of Content Particulars
S.No 1
Section- I •
2 3
1-10
Industry overview
Section –II •
Page.No
11-40
Company Profile
Section-III
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42-44
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“Customer Relation Management initiation to improve sales at Café Coffee Day” • 4
5
Project Details
Section-IV • Analyses & interpretation • Findings • Recommendation & Suggestion • Conclusion • Limitation Section V Annexure • Questionnaire • Advertisement • Bibliography • Coding sheets
44-71 71 73 75
Section -I
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
Industry Overview
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
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“Customer Relation Management initiation to improve sales at Café Coffee Day” Introduction:
Coffee occupies the third slot after tea and milk in the domestic market. Non-drinkers and occasional coffee drinkers, who account for 78% of the country's populace, are the prime target
for
the
Coffee
Board
and
retail
chains
for
promoting
consumption.
According to the study done by the Gallup and Coffee Board, the top of mind recall for teas in the country is 66% as against 22% for coffee. Speaking on opportunities for coffee retailing in India, the country's coffee consumption topped 85,000 tonnes in 2006. Though coffee has been in a commanding position in the southern states, tea also has an equal share. There is a great scope for increasing coffee consumption amongst occasional drinkers and non-drinkers. Coffee has to compete with other beverages to get its share of throat. Marketers have to target younger consumer, and come with new and appealing patterns. Coffee can be easily associated with wellness, health and youth. The market potential is $100 million. INDIA -- Domestic consumption of coffee shows a steady increase. This fact is happening in the same time with the fast food segment growing at the rate of 40% every year. In the next couple of years, coffee chains in India are expected to grow at an annual rate over 30%. From being a traditional beverage consumed mainly in South India, coffee now has a national presence, consumed in several forms and retail formats. The results have been dramatic: domestic consumption of coffee last year increased by nearly one-third, from 60,000 to 80,000 tons.
Coffee production and consumption State-wise Production in metric tones Coffee consumption in India Estimated Domestic Consumption (1991 - 2005) Calendar Year
Quantity (in MT)
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“Customer Relation Management initiation to improve sales at Café Coffee Day” 1991
55000
1992
55000
1993
55000
1994
55000
1995
55000
1996
55000
1997
55000
1998
55000
1999
55000
2000
60000
2001
64000
2002
68000
2003
70000
2004
75000
2005
80200
Internationally, coffee sales are virtually stagnant, moving ahead at 0.5 per cent. According to a research report by the United Nations Food and Agriculture Organisation, India's coffee consumption has been chugging along at 2.2 per cent per annum. With consumption pegged at 70,000 tonnes, branded coffee accounts for 53 per cent, unbranded 40 per cent, with cafes constituting 7 per cent. Industry estimates peg the annual growth rate of the coffee-house segment at a half per cent clipz
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
The Coffee Café Industry The Coffee Café industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafés, hotel cafés and retail café chains. India has always been predominantly a Chai (Tea) drinking nation. India is famous for drinking tea .people in India irrespective of the Class, religion and place are fan of tea. Coffee remain in a distinct position compared to tea. However in these days coffee consumption is increasing in India. Indian coffee Board is promoting coffee and it seems that their promotional activities are yielding good result. Coffee has been only moderately popular in some southern states, other than that it has been Chai (Hindi term for Tea), Chahaa (Marathi term for Tea), cutting (Mumbai term for half tea cup), maramari (another popular term from western India for tea) all the way! However, there has been a sudden change in this trend with coffee becoming more and more popular in recent times especially among the younger population. The roadside Chai (Tea) thelas (shops) outside colleges and offices have been replaced by hip coffee joints like Barista and Café Coffee Day. The Chai (tea) that used to cost couple of rupees (5 cents) is replaced by coffee costing something like Rs. 100 ($2.50). The organized coffee retail business in India is over Rs.8 billion ($17 million), and the potential for coffee retail outlets are nearly 3,000.
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“Customer Relation Management initiation to improve sales at Café Coffee Day” With the Indian middle class consumer ready to spend more and be a part of global lifestyle and culture, coffee parlours in the country are on an expansion spree. From small-sized coffee parlours to classy coffee lounges leading coffee retailers such as Café Coffee Day, Barista, Costa Coffee and Coffee World have all been fighting hard to lure India’s growing middle class. Individual Cafés: The main bulk of revenue is earned by small, individual cafés, run mostly by families and friends. It is a relatively unorganized sector. There are millions of such cafés around the world, and they provide customers with a homely, casual experience. The bulk of these cafés are mainly in Europe, where every little town or village has local cafés, where people gather together for a conversation over coffee, or just to be alone with their thoughts. These cafés have been the birthplace and sanctuary for various creative minds, revolutionaries and thinkers of our time. The most recent example is the author J.K. Rowling, who has written most of the Harry Potter series of books, sitting at her local café. These cafés set themselves apart from retail chain cafés and hotel cafés because they provide customers with a homely, classic appeal, which cannot be emulated.
Hotel Cafés: Ever since the popularization of coffee, hotels all over the world started opening 24-hour coffee shops where visitors to the hotel could walk in for a cup of coffee and some food at any time. These coffeehouses are extremely important, because they provide international visitors to
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“Customer Relation Management initiation to improve sales at Café Coffee Day” the hotel with a universal drink- coffee. Any customer can walk into any major hotel in the world, and enter the coffeehouse, and know what to expect. These cafés are not really major players in the coffee café industry, but rather provide supplementary services to the hotel industry. Retail Café Chains: The last, and the most organized sector in the coffee café industry, is the retail café chain. Off late, these chains have become extremely popular and are growing at an ever-increasing pace. These retail chains have work with an organized structure of man, material and money. The work on developing a recognized brand consistent to all their outlets, which customers can easily relate to, wherever they go. They provide customers with a standardized level of service and quality at each of their outlets. Tiff in also. The vintage location of the mess attracts huge crowds even today early in the mornings, Coffee however was not the only item on the menu. These places also served food and other drinks to their customers.
The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafés, to all sections of society. The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee café owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around the country. The concept of a café today is not merely about selling coffee, but about
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“Customer Relation Management initiation to improve sales at Café Coffee Day” developing a national brand. Retail cafés now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally.
Major Competitors As coffee culture gets bigger in India, a traditional tea drinking nation, domestic and international chains are lining up big expansion plans to the tune of nearly Rs 325 crore in the next 3-5 years. Majors players like Barista, Costa Coffee, Cafe Coffee Day and Barnie's are already working overtime to expand their presence in the country and implement product portfolio overhauls. On the other hand, global player Starbucks Corporation is all set to make its India debut in 2007. All café chains, are looking to cash in on the booming coffee retail in India, which is expected to grow at an annual rate of over 30 per cent in the next couple of years on the back of patronage from the young population in the 18-25 age bracket with a growing disposable income.
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“Customer Relation Management initiation to improve sales at Café Coffee Day” The latest to announce big plans for expansion in the Indian coffee retail market is UK-based coffee shop chain Costa Coffee. The company is doing an investment of Rs 150 crore to set up 300 outlets in the next five years. Costa is taking steps to widen its menu, including addition of a range of wraps. It is also in the process of fine-tuning an India specific menu to appeal to the local palate. In the wake of increased competition, Barista, one of the first players, is making an investment of Rs 50 crore this fiscal to add around 100 new stores. It plans to have a total of 250 outlets by end of this fiscal and take it beyond the metros to smaller cities. US-based coffee store chain Barnie's had said it would invest Rs 75 crore while announcing its foray in the Indian market. It will open 300 stores across the country in the next five years. In the first year itself they are looking at setting up 25 stores in the country and the company would open stores at Bangalore, Mumbai, Chandigarh, Jalandhar and Lucknow.
Another major player in the segment part of Amalgamated Bean Coffee Trading Company Ltd, Café Coffee Day is looking at an investment of about Rs 35-50 lakh per outlet. Cafe Coffee Day has already made plans to open toyal 500 outlets across India by 2007. While the existing players are looking at consolidating their businesses, US-based coffee retail giant Starbucks Corporation is planning to enter India with its expected debut in 2007. They are looking forward to offering the finest coffee in the world to customers in this country within the next 18 months.
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
Section –II
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
Company Profile
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
About Amalgamated Bean Coffee Trading Company Limited (ABTCL)
Mr.V.G Siddhartha, Chairman CCD initiated his business interests in coffee by incorporating Amalgamated Bean Coffee Trading Company Limited (ABCTCL) in the year 1994. From Exports to commodity trading and building a brand, Coffee Day entered with ‘Fresh n Ground’ and subsequently went up the value chain thereby revolutionizing the metropolis with Cafes under the brand Café Coffee Day.
ABCTCL today is one of Asia’s top 500 companies and soon aims to be among the top 3 coffee retailing companies in the world. We are currently 400 cafes in India, Pakistan & Austria (Vienna). ABCTCL also has an ambitious growth plan of opening 1000 cafes by 2010 making its presence across 80 Indian cities also establishing 50 cafes in 10 foreign countries. Our customers have given us the thumbs up for our quality standards in Pakistan and Austria and that motivated us to go to 10 countries where plans are currently being rolled out. And is planning to open other Cafes in the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the coming months. Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. Café coffee day I based in chickmaglur and has its business spanning the entire value chain of coffee consumption in India.
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
Its different divisions include: •
Café Coffee Day:
It is a place where customers come and rejuvenate themselves. It is a meeting place for the young at heart. In the cafes they sell Hot and Cold coffee as well a Food and Merchandise to the customer. •
Coffee Day Fresh n Ground: Which owns 354 Coffee bean and powder retail outlets
Major player in the most and ground filter coffee segment. It provides a unique assortment of blend at affordable prices. The coffee is freshly ground in front of the customer and sold to him. •
Coffee Day Xpress: Which owns 341 Coffee Day Kiosk
Bridges the need gap between the leisurely cuppa and a bite at the café and a quick drink at a vending point. In this segment you would notice kiosks strategically positioned, where customer can not only drink a cup of coffee but also grab a quick bite on the move. •
Coffee Day Take away: Which owns 7000 Vending Machines
To serve the man on the move, who though in a hurry doe not have to compromise on the quality of coffee he drinks. Coffee Day has its vending machines placed in vendor outlets in all major cities.
•
Coffee Day Exports : India’s largest coffee exporters.
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“Customer Relation Management initiation to improve sales at Café Coffee Day” Currently export over 30000 tones of green coffee per annum, i.e. 15% of India’s coffee exports. We have also ventured into specialty coffee exports. •
Coffee Day Perfect: FMCG Packaged Coffee
For mass-in-home consumption segment where filter coffee is consumed everyday. The filter coffee is sold in a packaged form to the consumer
Plantation: ABC has its seeds sown in the heart of the coffee cradle of India, Chikmagalur. The region is a world wrapped in primeval innocence, where panthers, tigers and elephants roam. ABC has its seeds sown in the heart of the coffee cradle of India, Chikmagalur. The region is a world wrapped in primeval innocence, where panthers, tigers and elephants roam. Our passion for coffee stems from the august heritage of coffee estates inherited by the promoter's family. What started out with a small group of family-owned estates, gradually grew as more and more estates were included to finally form Amalgamated Bean Coffee Trading Co. Ltd.
The plantations nestled in Chikmagalur and Mudigere region of the Western Ghats, are spread over 5000 acres of well-maintained estates upto 4500ft above sea level. This makes us the second largest plantation company in the country.
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“Customer Relation Management initiation to improve sales at Café Coffee Day” They are hosts to innumerable herbs,shrubs and trees like jackfruit, arecanut, orange, pepper, cardamom, etc. The coffees at our estate are grown under the dark shades of various forest trees like silver oak, Indian Rose wood and various others.
Awards and Accolades •
Café Coffee Day was named Food Services Retailer of the Year and Eclusive Brand Retailer of the year at 1st ICICI Bank Retail Excellence Awards function in 2005.
•
Café Coffee Day was rated the No. 3 food services brand in Business World and Brand Equity surveys in 2004
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“Customer Relation Management initiation to improve sales at Café Coffee Day” •
Café Coffee Day was ranked as the 3rd best Retail F & B chain in the Brand Equity Survey in 2004.
•
Mr. V. G. Siddhartha, Chairman ( Amalgamated Bean Coffee Trading Company Limited) received the “ Economic Times – Entrepreneur of the year 2003” award.
•
Café Coffee Day has had a hat trick victory in the India Barista Championship. For 3 years in a row 2002, 2003, 2004 ccd has won all the top award and its representative has gone on to represent India at World Barit Championships, winning silver medal in 2002 and 5th place in 2004 for the country.
About CAFÉ COFFEE DAY Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in neighbouring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen.
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“Customer Relation Management initiation to improve sales at Café Coffee Day” Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a dynamic journey to become a large organized retail café chain with a distinct brand identity of its own. From a handful of cafés in six cites in the first 5 years, CCD has become India’s largest and premier retail chain of cafes with 552 cafes in 90 cities around the country. With its roots in the golden soil of Chickmaglur, the home of some of the best Indiann Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the entire value chain of coffee consumption in India.
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
Its different divisions include: •
Coffee Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets)
•
Coffee Day Xpress (which owns 341 Coffee Day Kiosk)
•
Coffee Day Take away (which owns 7000 Vending Machines),
Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.
Mission statement………
Logo….
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“Customer Relation Management initiation to improve sales at Café Coffee Day” For a brand to stand out and be successful there has to be a personal commitment from staff at all levels. The target customers must identify with it. It should be vibrant and have a “life” of its own. Liveliness, growth, fun and passion depicts our brand, our customers, our staff and our future – this is embodied in our design and colour. Our LOGO colours embody: Red Square= White Swirl
Leadership, passion
= Purity of purpose, invigorating properties of coffee
Green Stroke
= 125 years of coffee growing heritage of this vertically
integrated Group
Café store: Café Coffee Day is India’s largest and premier retail chain of cafes with 421 cafes in 75 cities around the country. All major cities such as Banglore – 83 cafes at present Ahemedabad - 12 cafes Chennai – 16 cafes Goa – 7 cafes Gurgaon – 9 cafes Hyderabad – 22 cafes Jaipur – 7 cafes Kolkata – 15 cafes Mumbai – 65 cafes New Delhi – 50 cafes Puna – 20 cafes
Café Stores
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
ORGNIZATIONAL CHART AND A CAREER GROWTH
HEAD - OPERATIONS
REDGIONAL MANAGER
ASSISTANT REGIONAL MANAGER
CITY MANAGER
AREA MANAGER
CAFÉ MANAGER REGIONAL TRAINER ASSISTANT MANAGER
CITY TRAINER
CAFÉ INCHARGE
TEAM MEMBERS
Different formats of café…….. Café Coffee Day has been experimenting with café formats for quite sometime, CCD has ventured into the following formats:
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“Customer Relation Management initiation to improve sales at Café Coffee Day” Music Cafés provide customers with the choice of playing their favourite music tracks on the Digital Audio Jukeboxes installed at the café! There are around 85 cafes with such jukeboxes. 32 cafes also provide customers with the visual treat of watching their favorite music videos by means of Video Jukeboxes. Book Cafés offer the perfect solution to people who think that the coffee experience is incomplete without browsing through the bestsellers or reading a classic. CCD’s book corners accentuate the age-old combination of ‘coffee and books’. Highway cafés on the Bangalore – Mysore highway and NH-8, presents the traveler en route not only with good coffee and scrumptious snacks amidst great ambience but also with clean restrooms to get rid of that weariness from the road! Lounge cafés at Hauz Khas, Delhi and Southern Avenue, Kolkata(Southern Avenue) and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively ambience and comfort of a café. With exquisite interiors, exotic menu and thematic music CCD Lounge offers a whole new experience to the connoisseur while assisting the latter through its team of hostesses who are poise and style incarnate and are looked upon as fashion icons. Garden cafés at M.G Rd, Bangalore and GKII, New Delhi combine the joy of rejuvenating amidst verdant landscapes and pots of coffee. Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi combine the urge to surf, not to mention get connected through the internet while enjoying perfectly brewed cups of coffees, both domestic as well as International blends! Sports café, singles café, fashion café are the upcoming café formats……………………
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“Customer Relation Management initiation to improve sales at Café Coffee Day”
ProductRang
cream
Moments
e:Coffees
Chocolate Sauce
Banana
Teas
Teas
Walnut Cake
Hot Coffee
Assam Tea
Banana
Espresso
Masala Chai
Chocolate
Espresso
Lemon ‘n Ice
Mousse
Americano
Tea
Banana Caramel
Macchiato
Kashmiri
pie
Cappuccino
Qahwah
Chocolate
Café Latte
Apple
Chococinno
Cranberry
Café Mocha
tea
Marble Cake
Irish Coffee
Refreshing
Pineapple
International
Alternatives
Getaux
Coffee
Granitas
Chocolate Cake
Colombian Juan
Blood Orange
Ice-Creams
Valdez
Cool Blue
Vanilla
Ethiopian
Pineapple Crush
Chocolate
Qahwah
Emerald Ice
Seasons Best
Kenyan Safari
Ruby Surprise
Quick Bites
Cold Coffee
Smoothies
Samosa
Sweet Mint
Mango Colada
Puff
Cold Sparkle
Strawberry
Pizza
Brandied
Colada
Croissant
Banana
Cremosas
French Fries
Tropical Iceberg
Litchi
Kathi Roll
Iced Eskimo
Ginger Spice
Wraps
Coffee Add-ons
Pina Colada
Biryani
Honey
Cool
Sandwiches
Flavoured
Refreshers
Burger
Syrups
Fruit Juices
Red Eye
Mineral Water
Whipped Cream
Eatables
Scoop
Melting
pf
&
Ice
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n ice
n’
Doughnut Cookies
Page 26
Product Sources: Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee beans to the demanding specifications of the discerning coffee consumers. The coffee beans are supplied to all the cafés from Chikmagalur. The eatables at Café Coffee Day are catered by different vendors: example: ice creams are catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue comes from sale of merchandise. Quality standards: Quality policy: “We are committed to quality and we shall strive continuously to provide products, which consistently meet the needs of our customers and establish a value-added relationship, ensuring total customer satisfaction.” Café Coffee Day has a check on quality all the time and in several aspects. The operational in-charge will go around checking business, record keeping, and service and heck the feedback forms. The food in-charge will look at the way food is being stored, coffee is being made, what is the time take to extract the coffee and so on. Marketing person will go about checking displays, how the merchandise is displayed.
Café Beat Café Beat reaches more than a million smart, receptive and upwardly mobile youth of India every month. It is one of the most widely read
YOUTH
magazines in the country
and is a part of one of the largest Indian retail youth brands - Café Coffee Day.
CAFÉ BEAT FACTFILE: 16 pages, all colour, monthly tabloid. Available at all cafes across the country (552 cafes in 90 locations as of Today!). Available FREE of cost to customers for in-café reading. Many customers also carry it away for their referrals. 38% of the customers at CCD read Cafe Beat (survey conducted in Aug.'04 in the 4 metros.). CCD gets around 3.9 million walk-ins in all its cafes per month. Essentially a youth magazine covering topics like movies, music, travel, lifestyle, edating, books, career etc. which interest the youth. Displayed on magazine stands/counter at the cafes. The new issue is kept on the tables during the first week for greater visibility. Readership profile: Students and young professionals, mostly. SEC A and B.
Merchandising: Every one likes to cherish good times with a hope that they last forever. To make this a reality merchandising started. At Café Coffee Day merchandise started more as a sentimental thing than as revenue stream. They wanted to reward coffee lovers and they started selling mugs. People wanted to wear something that reminded them of the cafe so they designed T-shirts and sold thousands of those. But soon it has become a serious business. 5 per cent of their revenue comes from the merchandising. Café Coffee Day sells various young and trendy merchandise through its stores: Café Coffee Day Merchandise now got more Affordable
S.No
Particulars
1
Funky Caps @ Rs 60 onwards
2
Cool T-Shirts @ Rs 229 onwards
3
Bags @ Rs 225 onwards
Coffee Powder
Coffee Filters @ Rs 120 4 Coffee Filters @ Rs 120 5 Coffee Filters @ Rs 120 6
1
Arabicaah @ Rs 65
2
Perfect @ Rs 55
3
Charge @ Rs 45
4
Dark Forest 200gms @ Rs 125
5
Dark Forest 500gms @ Rs 260
6
Malabar Monsoon 200gms @ Rs 125
Customer Profile: The cafĂŠ is a meeting place for 15-29 year olds, both male and female who are served the best coffee by friendly and informed staff, in an uplifting and invigorating ambience. Research shows that teen-agers form 25% of our customers while 38% of the customers are between 20-24years and another 23% belong to the age group of 25-29 years. Students and young professional comprise around 72% of our customers. 18% of the customers visit the cafes daily while another 44% visit weekly.
Each café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café Coffee Day as the place they frequent most after “home and workplace/college”. It is a place where they meet friends and colleagues, in groups of 3 or more; a place where they rejuvenate and are free to be themselves rather than a place to be “seen at” vis a vis other cafes.
People: People at Café Coffee Day believe that “People are hired for what they know but fired for how they behave”. Motivation and personal skill are laid emphasize upon.
Employee base and career growth…..& organizational culture… The company today has over 3500 employees. The basic criteria for selection of an employee are he should be extremely creative and passionate. So the company has a intensively growth oriented team with it. Company is recognized as an equal opportunities employer. To provide individuals with continual growth and prosperity is fundamental to the culture of our organization, however our inner strength is derived from encouraging the entrepreneurial spirit among our employees. Experiencing unforeseen challenges is a way of life in café coffee day. Facing creative and innovative brainstorms is a part of everyday decision making and an open door policy helps drive these ideas towards real time turnaround and faster completion. Internal Promotions: An intensive, focused in-house training structure helps employees to grow to the next
level
Job Enrichment:
with
highly
active
internal
promotions
process.
The organization firmly believes in creating opportunities for learning in the
employee’s area of interest outside his scope of routine responsibilities. This comes mostly in the form of projects or assignments carried out under the supervision of a mentor within the organization.
Job Rotation: Employees are rotated through the various sections at the café so that they will be exposed to all facets of the café operations. Rewards & Recognition: At café coffee day people are brought out in appreciation for their efforts in various formats. A whole lot of rewards are offered along with great incentive programs with access to gift certificates and merchandise. Café Culture Along with the company’s fast paced growth, company provides ample growth opportunities for those who would go that extra mile to deliver and contribute to their
success. Employees are encouraged to be participative with suggestions to improve their workspace in particular and the company at large. The company has an open door policy that allows every member of the team to access the Management head regarding any proposals or problems.
The practices like Coffee Table encourage innovative thought pattern that habituate growth and smart work in the day to day lives of employees. The company culture is a reflection of the café culture which symbolizes team work and creative outlook on life.
Strategy Café Coffee Day was among the first coffee cafés to start operations in India in 1996, but was the last to go national (end-2001). Today, with 400 cafés in 75 cities, Café Coffee Day is the largest chain in the country. Main strategy is •
combination of affordable prices and product
•
attention to customer needs
•
a strong back-end support system.
India is largely a tea-drinking nation, and coffee has always been a fringe player. While coffee cafés have existed in Europe since the 15th century, in India coffee drinking was restricted to niche segments like intellectuals, the south Indian traditionalist and the five-star coffee shop visitors till the late-1990s. This started
changing slowly after 2000 — and not because there were many café players in India
by
then.
The direct causes for this change were probably the increasing spending power among urban youth and the increasing exposure to global trends. Hence, even as the first café was set up in Bangalore in 1996 — an idea that struck our chairman V G Siddhartha, while on a visit to a coffee shop in Singapore — it proved to be an idea whose time came only by the turn of the century. By then, most other players had joined the bandwagon. They have seen the hard days when every customer had to have every item on the menu explained. That’s one reason they waited until 2000-01 to start expanding nationally. Supply chain Another reason was that they wanted to put the back-end systems in place. Transporting fresh roasted coffee from their own estates in Chikmagalur to faraway places like Mussourie in the north and Jamshedpur in the east —they are the only national player present in both cities — was a logistical nightmare If, in the thirst for growth, company did not pay attention to this aspect. Believed in being more sure-footed. From bean to cup company is into the coffee estate business for the past 125 years: which means they do not look at the coffee chain business as a short-term business. Company invested approximately Rs 1. 2 crore in r supply chain and chalked out what is called a B2C (bean to cup) supply chain strategy. The supply chain had to support the expansion plans of adding four to six new cafés every month, which led us to adopt industry best practices and, in some cases, develop our own modules. Company went in for a decentralized distribution strategy instead of a hub-and-spoke model, and set up regional hubs in Delhi, Mumbai and Kolkata. These cities then
linked to the towns in their neighborhood. The sourcing policy at these hubs included both local and centralized sourcing, based on the volume lead time and value of the materials. We followed a continuous replenishment policy by integrating vendors upstream. For items that had fluctuating demand and large volumes, the inventory was managed by vendors.
By implementing a web-based ordering and electronic order processing system, we cut order-to-delivery lead-time considerably. Online inventory tracking process operated with the use of two supply chain modules: one at the cafÊ level — called the POS (point of sales) module — and another at the distribution centre level. This was developed internally.
Chikmagalur
Bangalore (South India) (Head Distributor)
New Delhi (North India) (Head Distributor)
Local Warehouse
Local Warehouse
Outlets
Outlets Outlets
Outlets
Outlets Outlets
What’s on the menu
Menu includes over 250 customised food and beverage offerings to cater to different geographic and demographic segments. At cafĂŠs, every coffee menu is combined with the right kind of eats, whether a dessert or a snack. Menu changes occur once in four months to prevent food fatigue. Company believes in regular customer feedback and research so as to determine changing tastes and preferences.
An important decision company took in their outlets was to provide table service and not enforce self-service. The finding was that customers did not want their names to be shouted out when their orders were ready. Another advantage of table service is that they can engage customers in conversation and persuade them to try more dishes on the menu. This is something that cannot be done in a self-service set-up, when there are people queueing up, waiting to be served.
Putting consumers first Customers are the best consultants we have. CCD has redesigned its logo, look, and feel of the cafĂŠ, as well as our brand positioning according to the customers.
We also give out customer feedback forms along with the bills. The filled forms are collected from all regions and sent to the headquarters on a regular basis, to be read and
analyzed
in
detail.
These
forms
also
have
an
id.
Customers who mail in with serious complaints receive a reply within 24 hours.
The price of a cup Main strategy has always been to provide the best coffee experience at an affordable price. For this they need to keep operating costs low. In fact, a large part of our success is due to stringent cost controls. We get coffee beans cheap because we source from our own estates. Most IT solutions were also designed in-house to keep costs low. Company is extremely cost conscious, which they try to inculcate in their employees as well. Traveling expenses and the use of cars and telephones is kept to a minimum. And in many outlets, employees who serve customers do the housekeeping as well, so that they need not need hire extra employees for that task. They try to cut costs at every stage, without cutting corners. For instance, instead of three hinges for the café doors, we use only two; and, instead of six screws in the hinges, we use only four. They also keep our costs low by sourcing furniture from overseas — compared to India, east Asian countries and China are far ahead in terms of low-cost, quality furniture. Imported furniture is about 25 per cent cheaper than Indian, custom-made furniture. It’s not just furniture. Bangladesh and Sri Lanka produce better quality crockery at similar prices.
Café Coffee Day has different food suppliers for different locations. Within one region, we may have as many as three suppliers if there are 40 or 50 cafés. That way, one supplier can serve 15 to 20 cafés. It is too risky to depend on one supplier — if something goes wrong, the food supply to all the cafés in a city can be affected. Full of beans Café Coffee Day generally believes in having clusters of cafés. Within the Mumbai suburb of Bandra, for instance, we have six outlets.
At another location, too, CCD has six cafés within a span of half-a-kilometre. This does result in a little cannibalization, but it also means that we blanket that area. Importantly, none of these outlets is a franchise. A crucial part of the strategy is that all outlets are company-owned. Even though self-owned cafés are more expensive in the short term, a too-hasty switch to the franchisee model may cost the brand value. Besides, self-owned cafés mean greater control on product quality, service and training, which is critical for a relatively-young brand such as ours. Another policy is that CCD do not advertise. They believe that they are not yet big enough to justify mass advertising — on-site promotions and localised marketing initiatives still do the trick for CCD. It is found that 85 per cent of the customers are through word-of-mouth. And even without advertising, last year 30 million people visited our cafés. This year, we’ve hiked that target to 40 million. Then, employee incentives at the cafés depend not only on sales, but also the profits. Also, if a café does not deliver profits within six months of starting operations, they close it. Over the years, we have closed 14 Café Coffee Days, while 153 are in operation. CCD is in the process of revamping our loyalty programme to make it dynamic and attractive. Previously customers could get 10 per cent discount on purchases made at our outlet and the points accumulated could be encashed for prizes.
Café Coffee Day gives the market what it wants, not what it is good at.
Business association: CCD has emerged as an interactive alternative media for brands to communicate with the ‘young at heart’. Other media, such as electronic, print and outdoor, offer brand communication through visual and audio modes to a large section of the populace, both relevant and irrelevant. Café Coffee Day offers a much more interactive, targeted communication, sometimes
adding
even
a
taste
dimension
to
a
brand
idea!
Various in-café collaterals used to impart visibility to a brand inside a café or to add the element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc. Over the years, CCD has successfully promoted a number of brands/products/events through various innovative tactics and promo ideas. Cashing in on its mass captive audience, we at CCD have entered into tie-ups and promotions which are well knit with our brand promise and which can be creatively used to woo the Indian Youth. Corporate Social Responsibility Despite achieving tremendous growth, the company has counted it of utmost priority to contribute success back to our society. Of our many corporate social responsibilities our main attempt has been to create exciting and valuable employment opportunities for the less fortunate and make them as independent as possible. Our understanding with a known
NGO Enable India gives us the opportunity to employee hearing &
speech impaired people. The company has also initiated a VOCATIONAL TRAINING COLLEGE that recruits individuals from the less fortunate, remote parts of the state and trains them in a state-of-the-art facility at Chickmaglur. Here they learn about operations & customer service. The training also includes on-the-job training after which the students are provided with full time employment opportunities with Café Coffee Day.
Section-III
Project Details
Project Details “Customer Relation Management initiation to improve sales at Café Coffee Day” The project also includes how to retain the existing customer. It has also seen which activities inspire the customer to visit Café Coffee Day more often. The study was made know whether customers are satisfied about Café Coffee Day or not. Because satisfied customers will be the loyal customers. It has also seen which things are not going good for further improvement.
Customer Relationship Management: Customer Relationship Management is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It's a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success
Customer retention Under the present of competitive environment, the focus of the Organization is more on customer retention than customer acquisition. Customer retention is the process of keeping customer acquisition. Customer retention is the process of keeping customer in the customer inventory for an Unending period by meeting the needs and exceeding the expectations of those customers
Topic of the Study “Customer Relationship Management initiatives to improve the sales at Café Coffee Day” Need: 1. To understand the importance of CRM in service industry To understand whether CRM strategy helps in retaining existing customer 2. To know how CRM will help in improving CCD performance. Objective: 1. To know the importance of CRM in Café Coffee Day. 2. To introduce CRM strategy in Organization. 3. To know whether CRM helps to build strong relation with customer. 4. To know whether CRM helps to retain the customer. 5. To identify area for further CRM improvement. Research Methodology 1. Survey through questionnaires 2. Face – to-Face interview
Sample size: 100 Sample unit: Customers of CafĂŠ Coffee Day Sampling method: Convenience Sampling Secondary Data: The major source of secondary data is through internet .The information on coffee industry and company profile of CafĂŠ coffee Day is collected through internet.
Analysis & Interpretation .
Occupation: Occupation of Respondent
Valid
Student Working Business Total
Frequency 58 33 9 100
Percent 58.0 33.0 9.0 100.0
Valid Percent 58.0 33.0 9.0 100.0
70
60 58 50
40
33
30
Frequency
20
10 9 0 Student
Working
Business
Interpretation: •
58% of the respondents are students.
•
33% of the respondents are working.
•
9% of the respondents are business.
•
Student Visit Café Coffee Day more than other.
Cumulative Percent 58.0 91.0 100.0
Gender: GG Gender
Valid
Male Female Total
Frequency 56 44 100
Percent 56.0 44.0 100.0
Valid Percent 56.0 44.0 100.0
60 56 50
44
40
30
Frequency
20
10
0 Male
Female
Interpretation: •
56% of the respondents are Male.
•
44% of the respondents are Female.
Cumulative Percent 56.0 100.0
Age of the respondent Age of Respondent
Valid
15-20 20-25 25-30 30-35 35-40 Total
Frequency 15 57 21 6 1 100
Percent 15.0 57.0 21.0 6.0 1.0 100.0
Valid Percent 15.0 57.0 21.0 6.0 1.0 100.0
Cumulative Percent 15.0 72.0 93.0 99.0 100.0
70
60 57 50
40
30
Frequency
20
21 15
10 6 0 15-20
20-25
25-30
30-35
35-40
Interpretation: •
15% of the respondents are between the age group 15-20.
•
57% of the respondents are between the age group 20-25.
•
21% of the respondents are between the age group 25-30.
•
6% of the respondents are between the age group 30-35.
•
1% of the respondents are between the age group 35-40.
•
Age group” between” 20-25 visit Café Coffee day more other age group.
How often you visit Café Coffee Day? How often you visit CCD
Valid
Every Day Once in Week Once in fortnight Once in Month Total
Frequency 5 39 19 37 100
Percent 5.0 39.0 19.0 37.0 100.0
Valid Percent 5.0 39.0 19.0 37.0 100.0
Cumulative Percent 5.0 44.0 63.0 100.0
50
40 39 37 30
20
Frequency
19
10
5 0 Every Day
Once in Week Once in fortnight Once in Month
Interpretation: •
5% of the respondents visit Café Coffee Day every Day
•
39% of the respondents visit Café Coffee Day once in a Week
•
19% of respondent visit Café Coffee Day once in fortnight
•
37% of respondent visit Café Coffee Day once in Month.
•
Only 5% of the respondent Visit Café Coffee Day every day. So by using Promotional Activities and CRM techniques Café Coffee Day can make them to visit frequently.
How long you have been visiting Café Coffee Day How long you have been visiting CCD
Valid
From Start From 2 years From a year Recently Total
Frequency 30 28 29 13 100
Percent 30.0 28.0 29.0 13.0 100.0
Valid Percent 30.0 28.0 29.0 13.0 100.0
Cumulative Percent 30.0 58.0 87.0 100.0
40
30
30 28
29
20
13
Frequency
10
0 From Start
From 2 years
From a year
Recently
Interpretation: •
30% of the respondents are visiting café from start.
•
28% of the respondents are visiting café from last two year.
•
29% of the respondents are visiting café from a year.
•
13% of the respondents are visiting café from recently.
For what purpose did you visit Café Coffee Day
For what purpose did you visit CCD
Valid
Refreshment Light Snacks Parties Business meeting Other Total
Frequency 57 20 12 5 6 100
Percent 57.0 20.0 12.0 5.0 6.0 100.0
Valid Percent 57.0 20.0 12.0 5.0 6.0 100.0
Cumulative Percent 57.0 77.0 89.0 94.0 100.0
For what purpose did you visit CCD 70 60 57 50 40
Frequency
30 20
20
10
12 6
5
0 Refreshment
Parties Light Snacks
Other Business meeting
For what purpose did you visit CCD
Interpretation: •
57% of the respondent visit café for refreshment purpose
•
20% of the respondent visit café for light snacks
•
12% of the respondent visit café for Parties
•
5% of the respondent visit café for Business meeting
•
6% of the respondent visit café for other reason ( hanging up with friends)
What factor influences you to come Café Coffee Day What factors influences you to come CCD
Valid
Music Service Coffee & Snack Price & Promo Hospitality Environment Total
Frequency 7 8 49 1 2 33 100
Percent 7.0 8.0 49.0 1.0 2.0 33.0 100.0
Valid Percent 7.0 8.0 49.0 1.0 2.0 33.0 100.0
Cumulative Percent 7.0 15.0 64.0 65.0 67.0 100.0
What factors influences you to come CCD 60
50 49 40
33
30
Frequency
20
10 8
7 0 Music
Cof f ee & Snack Service
Hospitality
Price & Promo
Environment
Interpretation: •
For 7% of the respondent music influences to come CCD
•
For 8% of the respondent service influences to come CCD
•
For 49% of the respondent coffee and snacks influences to come CCD
•
For 1% of the respondent price & promo influences to come CCD
•
For 2% of the respondent hospitality influences to Come CCD
•
For 33% of the respondent Environment influences to come CCD
•
This shows that promotional activities are not effective. To make them effective company has to do some plan.
Are you aware of promotional activity conducted by Café Coffee Day Are you aware of promotional Activity conducted by CCD
Valid
Yes No Total
Frequency 37 63 100
Percent 37.0 63.0 100.0
Valid Percent 37.0 63.0 100.0
Cumulative Percent 37.0 100.0
70
63
60
50
40 37 30
Frequency
20
10
0 Yes
No
Interpretation: •
37% of the respondents are aware about promotional activities
•
63% of the respondents are not aware about promotional activities.
•
This shows that promotional activities are not effective and advertisement is less.
Would you likr to know
Valid
Missing Total
Yes No Total System
Frequency 53 16 69 31 100
Percent 53.0 16.0 69.0 31.0 100.0
Valid Percent 76.8 23.2 100.0
Cumulative Percent 76.8 100.0
60
53
50
40
30
20
Frequency
16 10
0 Yes
No
Interpretation: •
76% of the respondents would like to know about promotional activities
•
34% of the respondents not like to know about promotional activities.
•
This shows that most of them are interest in promotional activities.
Would you like to celebrate your special moment at Café Coffee Day Would you like to celebrate your special moments at CCD
Valid
Yes No Total
Frequency 84 16 100
Percent 84.0 16.0 100.0
Valid Percent 84.0 16.0 100.0
Cumulative Percent 84.0 100.0
100
84
80
60
Frequency
40
20 16 0 Yes
No
Interpretation: •
84% of the respondents like to celebrate their special moments at CCD
•
16% of the respondents don’t like to celebrate their special movement at CCD.
Would you like to be a part of any CCD event conducted in future? Would you like to be a part of any CCD event conducted in future
Valid
Yes No Total
Frequency 77 23 100
Percent 77.0 23.0 100.0
Valid Percent 77.0 23.0 100.0
Cumulative Percent 77.0 100.0
100
80 77
60
Frequency
40
20
23
0 Yes
No
Interpretation •
77% of the respondents like to be part of the CCD event
•
33% of the respondents don’t like to be part of the CCD event
•
CCD has to see the advertisement should reach those 77% of the customer. And conduct the events which should retain those customers.
Opinion about service opinion about service
Valid
Highly Satisfied Satisfied Nutral not satisfied Highly not Satisfied Total
Frequency 17 61 17 4 1 100
Percent 17.0 61.0 17.0 4.0 1.0 100.0
Valid Percent 17.0 61.0 17.0 4.0 1.0 100.0
Cumulative Percent 17.0 78.0 95.0 99.0 100.0
70
60
61
50
40
30
Frequency
20 17
17
Highly Satisf ied
Nutral
10 4
0 Satisfied
Highly not Satisfied not satisf ied
Interpretation: •
17% of the respondents are highly satisfied about service
•
61% of the respondents are satisfied about service
•
17% of the respondents feel service is not good and not bad means ok .
•
4% of the respondents are not satisfied about service
•
Only 1% of the respondents are highly not satisfied about service.
•
This shows service at café coffee day is overall good
Opinion about Price opinion about Price
Valid
Highly Satisfied Satisfied Nutral not satisfied Total
Frequency 3 39 48 10 100
Percent 3.0 39.0 48.0 10.0 100.0
Valid Percent 3.0 39.0 48.0 10.0 100.0
60
50 48 40 39
30
Frequency
20
10
0
10 3 Highly Satisfied
Satisfied
Nutral
not satisfied
Interpretation •
3% of the respondents are highly satisfied about price
•
39% of the respondents are satisfied about price
•
48% of the respondents feel price is neutral
•
10% of the respondents are not satisfied about price.
Opinion about promotional Activity
Cumulative Percent 3.0 42.0 90.0 100.0
opinion about Promotional Activity
Valid
Frequency 10 16 69 5 100
Highly Satisfied Satisfied Nutral not satisfied Total
Percent 10.0 16.0 69.0 5.0 100.0
Valid Percent 10.0 16.0 69.0 5.0 100.0
Cumulative Percent 10.0 26.0 95.0 100.0
80
69 60
40
Frequency
20 16 10 5
0 Highly Satisfied
Satisfied
Nutral
not satisfied
Interpretation: •
10% of the respondents are highly satisfied about promotional activity
•
16% of the respondents are satisfied about promotional activity
•
69% of the respondents feel promotional activities are neutrl
•
5% of the respondents are not satisfied about promotional activity
•
This shows promotional activities are not effective.
Do event conducted by CCD influence you to visit CCD
Do event conducted by CCD influence you to visit CCD
Valid
Yes No Total
Frequency 66 34 100
Percent 66.0 34.0 100.0
Valid Percent 66.0 34.0 100.0
Cumulative Percent 66.0 100.0
70 66 60
50
40 34
30
Frequency
20
10
0 Yes
No
Interpretation: •
66% of the respondents said events conducted by CCD influences them to visit CCD.
•
34% of the respondents said events conducted by CCD not influence them to visit CCD.
Which of the following Activity would influence you visit CCD Which of the following Activity woulf influence you to visit CCD
Valid
Birthday Party DJ Show Promotional Activity Foos Fest Total
Frequency 26 34 35 5 100
Percent 26.0 34.0 35.0 5.0 100.0
Valid Percent 26.0 34.0 35.0 5.0 100.0
Cumulative Percent 26.0 60.0 95.0 100.0
40
35
34 30
26 20
Frequency
10
5 0 Birthday Party
DJ Show
Promotional Activity
Foos Fest
Interpretation: •
For 26% respondents Birthday parties influences.
•
For 34% respondents DJ show influences.
•
For 35% respondents Promotional activity influences.
•
For 5% respondent Food Fest influences.
•
This shows promotional activity and DJ shows are more effective.
Opinion about the Staff: Opinion about the staff
Valid
Friendly Very Friendly Rigid Blank(No Reaction) Total
Frequency 62 11 18 9 100
Percent 62.0 11.0 18.0 9.0 100.0
Valid Percent 62.0 11.0 18.0 9.0 100.0
Cumulative Percent 62.0 73.0 91.0 100.0
70
60
62
50
40
30
20
Frequency
18 10
11
9
0 Friendly
Very Friendly
Rigid
Blank(No Reaction)
Interpretation: •
62% of the respondents feel staff of CCD is friendly
•
11% of the respondents feel staff of CCD is very friendly
•
18% of the respondents feel staff of CCD is Rigid
•
9% of the respondents feel staff of CCD is Blank.
•
This shows staff of café is good.
Cross Tabs
Age of Respondent * How often you visit CCD Crosstabulation Count
Every Day Age of Respondent
Total
15-20 20-25 25-30 30-35 35-40
2 3
5
How often you visit CCD Once in Once in Week fortnight Once in Month 7 2 6 20 7 28 10 6 2 1 4 1 1 39 19 37
Total 15 57 21 6 1 100
60 28 50
40
30 7 20
How often you visit
20
Once in Month
6 6
Count
Once in fortnight
10
10
Once in Week
7 3
0 15-20
20-25
25-30
4
Every Day
30-35
35-40
Age of Respondent
Interpretation: From above cross tabs, it can be interpretated that different age group people visit cafe Coffee Day more in once in week, once in fortnight, once in month. The major percentage of the customer who visit CafĂŠ Coffee Day are in the age group ranging from 20-25. Major part of the customer visit CafĂŠ Coffee Day once in Week and once in Month. This may not workout for the company. Therefore company has to take customer relation management initiative to retain the old customer and also acquiring new customers. How often you visit CCD * What factors influences you to come CCD Crosstabulation Count
Music How often you visit CCD Total
Every Day Once in Week Once in fortnight Once in Month
1 4 2 7
What factors influences you to come CCD Coffee & Price & Service Snack Promo Hospitality 1 1 21 1 3 6 1 4 21 1 8 49 1 2
Environment 2 13 7 11 33
Total 5 39 19 37 100
50
40 13
11
What factors influen
30 Environment 21
21
20 7
Price & Promo Coffee & Snack
10
Count
Hospitality
6 Service 3
4
0 Every Day
4
Music
Once in fortnight
Once in Week
Once in Month
How often you visit CCD
Interpretation : According to above cross table 21 % of the respondent visit monthly & 21% of the respondent visit once in week for the purpose of coffee and Snacks.
Occupation of Respondent * Are you aware of promotional Activity conducted by CCD Crosstabulation Count
Occupation of Respondent Total
Student Working Business
Are you aware of promotional Activity conducted by CCD Yes No 26 32 9 24 2 7 37 63
Total 58 33 9 100
70
60 32 50
40
24
30 26 20
Are you aware of pro Count
10 9
7
Working
Business
0
No Yes
Student
Occupation of Respondent
Interpretation According to above cross table awareness in each segment (student, working, business) is less. Percentage of aware respondent is less compare to the not aware respondents. To give awareness cafĂŠ has to give some advertisements ( in cafĂŠ). CCD can maintain customer data base so that they can send message or they can give call to the customer.
Age of Respondent * Which of the following Activity woulf influence you to visit CCD Crosstabulation Count
Age of Respondent
Total
15-20 20-25 25-30 30-35 35-40
Which of the following Activity woulf influence you to visit CCD Promotional Birthday Party DJ Show Activity Foos Fest 3 8 4 15 16 22 4 6 6 8 1 2 3 1 1 26 34 35 5
Total 15 57 21 6 1 100
60 4 22
50
40
30
16
Which of the followi 20 4
Count
10
0
Foos Fest
8 15
Promotional Activity 6
8
DJ Show 6
3
25-30
30-35
3 15-20
20-25
Birthday Party 35-40
Age of Respondent
Interpretation: •
22% of the respondent between age group 20-25 said promotional activity influence them to visit Café Coffee Day
•
8% of the respondent between age group 15-20 said DJ show influence them to visit Café Coffee Day.
•
8% of the respondent between age group 25-30 said promotional activity influence them to visit Café Coffee Day.
About Promo After analyzing the survey, it was very much clear that the customers were seemed to be more influenced by promotional activities. According to the survey 35% of the respondents feel promotional activity influence them visit t Café Coffee Day. Therefore accordance to customer’s response, it was decided to implement a promo for 2 days that is on Saturday and Sunday and to check out whether sales will increase, for the customer satisfaction regarding Promo. For this promo a local Heartbeat gallery has sponsored gifts The promo was like make a bill of Rs 299 and Get exciting gifts. I prepared advertisement, which was put on Café door before two days.
Details of the promo: •
Implemented for two days
•
The promo was promoted to customer two days before implementation and some people were informed through SMS.
•
With every menu card one advertisement of promo was given.
•
Around 30 bills were more than Rs 299
•
Utmost customer Satisfaction.
What is purpose of visit to Café Coffee Day What is purpose of visit to Cafe Coffee Day
Valid
Just a casual visit I visit on every weekend Promowas the purpose Total
Frequency 7 7 14 28
Percent 25.0 25.0 50.0 100.0
Valid Percent 25.0 25.0 50.0 100.0
Cumulative Percent 25.0 50.0 100.0
What is purpose of visit to Cafe Coffee Day 16 14
14
12 10 8
Frequency
6
7
7
4 2 0 Just a casual visit
Promow as the purpose I visit on every w ee
What is purpose of visit to Cafe Coffee Day
Interpretation: From the above graph it can be interpreted that the majority (14) of the respondent agreed that Promo was the purpose of their visit to Café Coffee Day. This is good sign for promo. This clearly indicates that given an opportunity, consumer are willing to visit Café Coffee Day. This evidently proves that well designed promo can attract the customer and also increase the sales Thus Café Coffee Day must take an initiatives to organize such more promos to attract and to retain the customer..
How could you rate the Promo How could you rate the promo
Valid
Frequency 10 15 3 28
Excellent Good Average Total
Percent 35.7 53.6 10.7 100.0
Valid Percent 35.7 53.6 10.7 100.0
Cumulative Percent 35.7 89.3 100.0
How could you rate the promo 16 15
14 12 10
10
8
Frequency
6 4 3
2 0 Excellent
Good
Average
How could you rate the promo
Interpretation The major pert of the respondents (15) said that promo was good. And to some extent customer (10) said that it was excellent. There were very few people who felt promo was good but rater as average. This shows promo had given positive impact on customer
Would you expect Café Coffee Day to organize such more promotion in future? Would you expect Cafe Coffee Day to organize such more Promos in future
Valid
Yes No Total
Frequency 25 3 28
Percent 89.3 10.7 100.0
Valid Percent 89.3 10.7 100.0
Cumulative Percent 89.3 100.0
30
25 20
Count
10
3 0 Yes
No
Would you expect Cafe Coffee Day to organize such more Promos in future
Interpretation: 25 of the respondent said that promotional activity inspires them to visit Café Coffee Day. When its crystal clear that promotional activity inspire people to visit café coffee day, CCD must take opportunity to attract the customer through promos which can build trust and good Customer Relation.
Are you satisfied with this promo?
Are you Satisfied with tis promo
Valid
Yes No Total
Frequency 27 1 28
Percent 96.4 3.6 100.0
Valid Percent 96.4 3.6 100.0
Cumulative Percent 96.4 100.0
Are you Satisfied with tis promo 30 27
20
Frequency
10
0 Yes
No
Are you Satisfied with tis promo
Interpretation: 27 of the respondent were satisfied about promo that they were a part of promo. Several consumers even suggested conducting more promos in future. This positive outcome shows that consumer were highly satisfied.
Findings: •
Students visit Café Coffee Day more
•
Age group between “20-25” visits Café Coffee Day more. They are the potential customers.
•
39% of the respondents visit Café Coffee Day once in week and 37% of the respondent visit café Coffee Day once in month.
•
57% of the respondent visit CCD refreshment Purpose
•
49% of the respondent feel coffee and Snacks influence them to visit CCD
•
63% of the respondent were not aware of the promotional activity Conducted by CCD
•
76.8% of the respondent would like to know about promotional activity.
•
77% of the respondent would like to be part of any future event in CCD
•
78% of the respondent Satisfied about service
•
66% of the respondent feel event conducted by CCD influence them to visit CCD
•
73% of the respondent feel Staff of CCD is friendly
•
36% of the respondent said promotional activity influences them, 34% said DJ shows influences them.
Promo: •
53.6% of the customer rated prom was good and 35.7% rated promo was excellent.
•
89% of them expect more events in future.
•
96.4% of the respondent satisfied about promo.
Suggestions & Recommendat ion
Suggestions and Recommendations 1. Organize at least few promotional activities in order to build good relation with customer 2. Give advertisement about promotional activity 3. Maintain Customer data base. 4. Wish the regular customer for New Year or for any festivals through greeting card or SMS or through gift. This will increase the loyalty of the customers. 5. Increase number of couches and place 6. Play the good music 7. Quick Service 8. To increase sales CafĂŠ Coffee Day can also have corporate tie ups within the city.
Conclusion
Conclusion The study helped me gain valuable insight in understanding how Customer Relation Management can help in increase sales .The project “Customer Relationship Management initiatives to increase sales at Café Coffee Day” has been a knowledge gaining experience. I have been able to understand that designing of promotional activity is an art and it help the company to increase the sales. Awareness about promotional activity is less .Though it has not been advertised at a large on television , still has
long way to go before it can catch up with its
competitors. I hope my work becomes useful for company.
Limitation: 1.
A study is restricted only for Hubli CCD
2.
Time duration is only 60 days
3.
The respondents may give biased opinion.
Questionnaire Personal Details: Name: Address: Occupation: a) Student
b) Working
c) Business
d) Housewife
Age: Contact No:
1) How often you visit café coffee day?
a) Every day
b) Once in fortnight
c) Once in fortnight
d) Once in Month
2) From how long you have been visiting Café Coffee Day? a) From initiation c) From year
b) From two years d) from recently
3) For what purpose did you to visit café? a) Refreshment
c) Parties
b) Light snacks
d) Business meeting
e) Other (Specify)----------------------4) What factor influences you to come to CCD? a) Music
b) Service
c) Coffee & Snack e) Hospitality
d) Price & Promo f) Environment
5) Are you aware of promotional activity conducted by CCD? a) Yes
b) No
If No, Would you like to know?
a) Yes
b) No
6) Give your opinion about following factor: Factors
Highly
Satisfied
Neutral
Satisfied
Highly not Not Satisfied
Satisfied
a) Service b) Hospitality c) Music d) Price e) Promotional activity Give your Suggestions to improve the not satisfied factor. _____________________________________________________________________ _____________________________________________________________________ 7) Would you like to celebrate your special moments in cafe? a) Yes
b) No
8) Would you like to be a part of any CCD event conducted in future?
a) Yes
b) No
9) Do event conducted by CCD influence you to visit Café a) Yes
b) No
10) Which of the following activities would influence you to visit CCD? a) Birthday party
b) DJ show
c) Promotional Activities d) Food Fest
e) Any other
11) What aspect of Café Coffee Day Need to be improve?
___________________________________________________________________ ___________________________________________________________________ 12) What is your opinion about the staff of Café Coffee Day? a) Friendly c) Rigid
b) very friendly
c) Blank
Also give your suggestion how you would like the team to treat you?
13) Would you like to be part of Pastry festival, if conducted by Café Coffee Day in near future? a) Yes
b) No
Feedback form Name__________________ Age___________________ Occupation______________ 1. How often do you visit café coffee day? More than once in week Once in a week Once in a fortnight Once in a month Occasionally 2. What is purpose of visit to café coffee day? Just a casual Visit I visit on every Sunday “Promo” was the purpose Any other Specify 3. How could you rate this promo?
Excellent Good Average Bad Very bad 4. Would you expect Café coffee Day to organize such more Promos in the future? Yes
No
5. Are you satisfied with this promotion? Yes
No
Thank You Bibliography Reference Books: o Marketing Management : Philip Kotler o Service Marketing: Valarie Zeithaml o Customer Relationship Management :A sagadevan
Website: www.cafecoffeeday.com www.google.com www.coffeeindustry.com www.wikipedia.com