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An Analysis on Consumer Preference towards “Café Coffee Day”
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBA PROGRAM OF DEPARTMENT OF MANAGEMENT STUDIES
PREFACE
Market provides a key to gain actual success only to those brands which match best to the current environment i.e." imperative" which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly
true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales.
This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year.
This survey report introduces study of consumer’s preferences for Café Coffee Day. After going through a detail analysis of market behavior and future prospect, t may also provide an opportunity to Café Coffee Day to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Bangalore, city in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers.
This study report also provides the various factors affecting the services. Marketing Division of Café Coffee Day has to keep in mind various factors specially while preparing a plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report
CONTENTS
Chapter 1. Introduction.1.1 Café Coffee Day.1.2 Objectives.1.3 Limitation.1.4 Research Methodology.
Chapter 2. Review of Literature.
Chapter 3. Data Analysis and Interpretation.
Chapter 4. Findings and Suggestions.
Chapter 5. Conclusions.
Chapter 6. Annexure.
Chapter 7. Questionnaire.
Chapter 8. Bibliography.
INTRODUCTION:
Consumer preference depends on the product’s perceived performance or service relative to a buyer’s expectations. If the products performance falls short of expectations, the customers are dissatisfied. If performances match the expectations, the customers are satisfied. If the performance exceeds expectations, the customers are highly satisfied. Outstanding marketing companies go out of their way to keep their customer satisfied. Satisfied customers make repeat purchases and tell others about their good experience with the product. The key is to Match Customers Expectations with the company performance. Smart companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.
About Café Coffee Day:
Simply put, Cafe Coffee Day is India's favourite coffee shop, for the young and the young at heart. We're part of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company.
You should see our estates, there's over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There's 11,000 small growers who make us who we are and we're glad to be a part of their lives. And we're not alone, there's folks in the USA, Europe and Japan that buy coffee from us, making us the top coffee exporter from India!
To put in plainly we brought in the concept of cafes in India (this is where you thank us!). The first one opened in 1996 on Brigade Road in Bangalore. It's been an exciting journey since then, becoming the largest organized retail cafe chain in the country. Oh, and if your travels take you to Vienna or Karachi Prague, do stop by our CCDs there for taste of the brew from home.
Café Coffee Day is a chain of coffee shops in India with its headquarters in Chikkamagaluru, Karnataka. It is a division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) and is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore and today is the largest cafe retail chain in India, with 1000 cafes in 141 cities and many in its base, Bangalore.
The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It offers satellite radio and
Wi-Fi at some stores via its tie-ins with World Space and Microsense, respectively. It has recently opened cafes in Pakistan, Germany, and Austria, as well. It offers wi-fi in collaboration with Aircel in India.
Café Coffee Day sources coffee from 10,500 acres (4,249 ha) of coffee estates, the second largest in Asia, that is owned by a sister concern and from 11,000 small growers.
Cafe Coffee Day's divisions include:
Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets.
Coffee Day Square, a high level coffee bar in Bangalore. Coffee Day Xpress, which runs 730 Coffee Day kiosks. Coffee Day Takeaway, which runs 9000 vending machines. Coffee Day Exports, its exporting wing. Coffee Day Perfect, its (FMCG Packaged Coffee) division.
Partner With CCD:
How would you like your brand to join conversations of over 300000 young people who spend over 45 minutes at our 900+ cafes every day? At Cafe Coffee Day we're all about making the circle bigger, so get in touch with us to see how you can get in touch with those who matter to you!
CCD has successfully executed a number of campaigns for various brands across a wide spectrum like FMCG, white goods, telecom, education and many more categories to meet their brand objectives and thus has proved to be a strong alternative to conventional media properties.
The opportunity to get your brand message across to our customers in a very subtle yet effective method is limitless. From large wall spaces which can attract the customer with eye catching brand messages to 3D table stickers, to branded tissue papers, the list is endless. We are also trying to continuously innovate and offer the best possible options to create a successful campaign.
OBJECTIVE OF THE STUDY:
To study the consumers preferences for Café Coffee Day.
To know the percentage of males and females that is aware about Café Coffee Day.
To know which brand’s advertisement mostly people have seen.
To know the reason to go Café Coffee Day.
To know why was the advertisement being noticed by the consumer.
LIMITATIONS OF THE STUDY:
Some of the respondents refused to fill the questionnaires.
The responses may vary as some people did not want to come up with real answers.
Limitation of time.
The survey is conducted only in a particular area; hence the results may vary in other parts of the cities.
The sample size was small.
The findings are based on the survey conducted in summer; the results may vary in other months.
RESEARCH METHODOLOGY:
DATA COLLECTION:
Research approach : Survey.
Research instrument : Structured questionnaire.
SAMPLING PLAN:
Sample unit:
People at age group: [Below 20] [21-30] [31-40] [Above 40] Years.
Bangalore. Sample size: 100.
Sample process: Random.
Duration : 3 months.
ANALYSIS:
Analysis have been done through –
Regression. Bar Charts. Pie Charts.
Review of Literature:
A study of factors responsible for brand preference:
The purpose of this paper is the study of factors responsible for brand preference in drinking items, increasing competition, more due to globalization, is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred brand. This brand
Preference is influenced by various factors.According to this study many factors were find out for
preferring a brand likeBrand personaBrand constancyBrand loftinessBrand value.
In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external attributes of a brand.
Color, Variant and Fragrance rule consumer preferences:
The intensity of color and the variant are the key drivers behind consumer acceptance of a particular brand, but packaging and labeling are not as important for winning over consumers; the study involved consumers at different stages of development and highlights the importance of adopting a “sensory marketing approach.
Companies need to continuously innovate to maintain market leadership. When the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumers. The study also demonstrates the importance of variants and color selection for new products.
Data analyses and Interpretation
Regression
Variables Entered/Removedb
Model
Variables
Entered
Variables
Removed Method
1 Tastea . Enter
a. All requested variables entered.
b. Dependent Variable: CCD
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .101a .010 -.004 .441
a. Predictors: (Constant), Taste
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression .138 1 .138 .707 .403a
Residual 13.234 68 .195
Total 13.371 69
a. Predictors: (Constant), Taste
b. Dependent Variable: CCD
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 1.345 .117 11.488 .000
Taste -.053 .064 -.101 -.841 .403
a. Dependent Variable: CCD
T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Visit 70 2.46 1.163 .139
Time 70 3.24 1.268 .152
Factor 70 3.73 1.522 .182
People 70 2.77 .837 .100
CCD 70 1.26 .440 .053
One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Visit 17.672 69 .000 2.457 2.18 2.73
Time 21.404 69 .000 3.243 2.94 3.55
Factor 20.496 69 .000 3.729 3.37 4.09
People 27.702 69 .000 2.771 2.57 2.97
CCD 23.893 69 .000 1.257 1.15 1.36
Oneway
ANOVA
Money
Sum of Squares Df Mean Square F Sig.
Between Groups 7.598 4 1.899 2.517 .050
Within Groups 49.045 65 .755
Total 56.643 69
Oneway
ANOVA
Money
Sum of Squares Df Mean Square F Sig.
Between Groups 7.404 3 2.468 3.308 .025
Within Groups 49.239 66 .746
Total 56.643 69
CCD
Frequency Percent Valid Percent
Cumulative
Percent
Valid cafe coffy day 52 67.5 74.3 74.3
Barista 18 23.4 25.7 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Visit
Frequency Percent Valid Percent
Cumulative
Percent
Valid once in a week 18 23.4 25.7 25.7
once in a month 19 24.7 27.1 52.9
twice in a month 19 24.7 27.1 80.0
once in six months 11 14.3 15.7 95.7
once in a year 3 3.9 4.3 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Money
Frequency Percent Valid Percent
Cumulative
Percent
Valid <200 19 24.7 27.1 27.1
200-400 32 41.6 45.7 72.9
401-700 16 20.8 22.9 95.7
701-1000 1 1.3 1.4 97.1
>1000 2 2.6 2.9 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Time
Frequency Percent Valid Percent
Cumulative
Percent
Valid <1/2 hour 5 6.5 7.1 7.1
1/2-1 hour 18 23.4 25.7 32.9
1-2 hours 18 23.4 25.7 58.6
2-3 hours 13 16.9 18.6 77.1
>3 hours 16 20.8 22.9 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
people
Frequency Percent Valid Percent
Cumulative
Percent
Valid alone 2 2.6 2.9 2.9
with 1 person 27 35.1 38.6 41.4
2-3 people 27 35.1 38.6 80.0
3-4 people 13 16.9 18.6 98.6
>4 people 1 1.3 1.4 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total
77 100.0
Factor
Frequency Percent Valid Percent
Cumulative
Percent
Valid taste of coffee 13 16.9 18.6 18.6
Ambience 2 2.6 2.9 21.4
service 8 10.4 11.4 32.9
Brand value 15 19.5 21.4 54.3
Passion 32 41.6 45.7 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Taste
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 38 49.4 54.3 54.3
2 22 28.6 31.4 85.7
3 7 9.1 10.0 95.7
4 3 3.9 4.3 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Price
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 21 27.3 30.0 30.0
2 28 36.4 40.0 70.0
3 12 15.6 17.1 87.1
4 4 5.2 5.7 92.9
5 5 6.5 7.1 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Brand
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 36 46.8 51.4 51.4
2 19 24.7 27.1 78.6
3 12 15.6 17.1 95.7
4 2 2.6 2.9 98.6
5 1 1.3 1.4 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Behavior
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 12 15.6 17.1 17.1
2 34 44.2 48.6 65.7
3 19 24.7 27.1 92.9
4 4 5.2 5.7 98.6
5 1 1.3 1.4 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Ambience
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 23 29.9 32.9 32.9
2 31 40.3 44.3 77.1
3 14 18.2 20.0 97.1
4 2 2.6 2.9 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Availability
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 37 48.1 52.9 52.9
2 13 16.9 18.6 71.4
3 7 9.1 10.0 81.4
4 10 13.0 14.3 95.7
5 3 3.9 4.3 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid 15-20 4 5.2 5.7 5.7
20-25 42 54.5 60.0 65.7
25-30 23 29.9 32.9 98.6
>30 1 1.3 1.4 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid 15-20 4 5.2 5.7 5.7
20-25 42 54.5 60.0 65.7
25-30 23 29.9 32.9 98.6
>30 1 1.3 1.4 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Sex
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 49 63.6 70.0 70.0
Female 21 27.3 30.0 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Income
Frequency Percent Valid Percent
Cumulative
Percent
Valid <20000 9 11.7 12.9 12.9
20000-25000 22 28.6 31.4 44.3
25001-30000 11 14.3 15.7 60.0
30001-40000 17 22.1 24.3 84.3
>40000 11 14.3 15.7 100.0
Total 70 90.9 100.0
Missing System 7 9.1
Total 77 100.0
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
CCD * Taste 70 90.9% 7 9.1% 77 100.0%
CCD * Taste Crosstabulation
Count
Taste
Total1 2 3 4
CCD cafe coffy day 27 17 5 3 52
Barista 11 5 2 0 18
Total 38 22 7 3 70
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
people * Price 70 90.9% 7 9.1% 77 100.0%
people * Price Crosstabulation
Count
Price
Total1 2 3 4 5
People alone 0 2 0 0 0 2
with 1 person 7 10 4 3 3 27
2-3 people 8 11 5 1 2 27
3-4 people 6 5 2 0 0 13
>4 people 0 0 1 0 0 1
Total 21 28 12 4 5 70
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
CCD * Income 70 90.9% 7 9.1% 77 100.0%
CCD * Income Crosstabulation
Count
Income
Total<20000 20000-25000 25001-30000 30001-40000 >40000
CCD cafe coffy day 6 14 9 14 9 52
Barista 3 8 2 3 2 18
Total 9 22 11 17 11 70
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Visit * Time 70 90.9% 7 9.1% 77 100.0%
Visit * Time Crosstabulation
Count
Time
Total<1/2 hour 1/2-1 hour 1-2 hours 2-3 hours >3 hours
Visit once in a week 1 4 5 2 6 18
once in a month 1 4 4 6 4 19
twice in a month 1 5 6 5 2 19
once in six months 2 3 3 0 3 11
once in a year 0 2 0 0 1 3
Total 5 18 18 13 16 70
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
CCD * Money 70 90.9% 7 9.1% 77 100.0%
CCD * Money Crosstabulation
Count
Money
Total<200 200-400 401-700 701-1000 >1000
CCD cafe coffy day 13 27 9 1 2 52
Barista 6 5 7 0 0 18
Total 19 32 16 1 2 70
Correlations
CCD Age
CCD Pearson Correlation 1 -.022
Sig. (2-tailed) .856
N 70 70
Age Pearson Correlation -.022 1
Sig. (2-tailed) .856
N 70 70
Correlations
The above bar diagram shows how often people go to coffee shop and how
much money they spend there.
The above Graph shows how many people prefer cafe coffee day and Barista.
SUGGESTIONS:
On the basis of above study following suggestions can be given:
Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.
The company should focus to bring some more different variants.
The company must be aware of and keep at least the latest knowledge of its primary competitors in market.
The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.
The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers.
The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product.
For their advertisement they can also introduce a brand ambassador, because most of the consumers remember advertisement because of their brand ambassador.
Questionnaire
1. What coffee shop do you usually go to?
A. Café coffee day B. Barista
2. How often do you visit a coffee shop?
A. once in a week B. once in a month C. Twice in a month
D. Once in six months E. Once in a year
3. How much money do you usually spend at a coffee shop?
A. <200 B.200-400 C. 401- 700
D. 701-1000 E. >1000
4. How much time do you usually spend at a coffee shop?
A. Less than ½ hour B. 1/2-1 hour C. 1-2 hour
D. 2-3 hour E. >3 hour
5. How many people do you usually go with?
A. Alone B. With 1 person C. 2-3 people
D. 3-4 people E. More than 4 people
6. What is the single most important factor for you to choose a coffee shop?
A. Taste of coffee B. Ambience C. Service
D. Brand value E. Passion
7. Please rank the following:
A. Taste and quality of the products
B .Prices of the products
C. Brand value
D. Staff Behavior
E. Ambience
F. Availability of products
8. Age: A. <15 B.15-20 C. 21-25
D. 26-30 E. >30
9. Sex: A. Male B. Female
10. Profession: ________________
11. Income: A. <20000 B. 20000-25000 C. 25001-30000
D. 30001-40000 E. >40000
BIBLIOGRAPHY:
REFERENCE BOOKS:
Kotler Armstrong, (2004) Principles of Marketing, New Delhi, Prentice Hall of India, 10TH edition.
Rajendra Nargundkar, (2011), Marketing Research Method, India, Tata McGraw-Hill, 3rd edition.
WEBSITES:
www.cafecoffeeday.com/our-cafe.php?mnid=1&pcid = www.en.wikipedia.org/wiki/Café_Coffee_Day
