Influence of product quality and sales man's behaviour on purchasing dcisions in Coffe Day

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CHAPTER I

IntroductioIntroductionn

A Lot Can Happen Over Coffee


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Influence ofProduct Quality and Sales Mans Behavior on the Purchasing Decision

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INTRODUCTION

In present era coffee is considered as one of the most important

beverage in the world. Coffee is a drink which stands at rank one in the world

and coffee is the highest consumed beverage throughout the world. In India

Southern part consume more coffee than North. Older generation of Indians

are familiar with the coffee Boards own Indian coffee House chain, but

these have turned too decrepit to serve the purpose any more. Branded coffee

retailing in India has picked up. Coffee has moved to be a social drink.

Coffee retailing is an example of a change in the consumer lifestyle. The keyplayers presently are Barista, Coffee Day, Bru, and Nescafe etc The fast

food retailers who have long offered milk shakes and ice creams have also

started offering coffee.

The organized retail business in the country is witnessing a boom and

studies by McKinsey and Fitch point out that it is set to grow exponentially in

the coming years. Market liberalization, a growing middle-class, and

increasingly assertive consumers are sowing the seeds for a retail

transformation that will bring more Indian and multinational players on the

scene.

Coffee retailing is a more recent phenomenon which started in the mid-

90s; it has caught consumers fancy in the past 3-4 years. As a result several

players, such as Coffee Day, Barista, Qwiky's, Caf Nescafe, and Java Green

have entered the market, and are in the process of consolidating their

presence.

A coffee shop is a public place where people can free their minds,

exchange ideas, catch the latest music video on a TV screen, play scrabble

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,browse through magazines, sift through greeting card, listen to cool music

and pick up attitude - laden merchandise like Caps ,T-shirts, etc and of course

consume some coffee or snacks. Teenagers typically seem to visit coffee

houses during the day, working yuppies during afternoon and friends and

family groups during the evening. Coffee shops are becoming hangouts for

collegians wanting to display their wit and yuppies wanting to do some

business brainstorming. Most of us have read Dot COM stories where trade

took place over the cups of coffee at cafes in Silicon Valley. There are people

who believe that creative juices flow only once the tie around the neck isloosened. There may not be many places where we can go and easily relax. If

we want to meet somebody, and to have some snacks and beverages, we go to

coffee shops. Older generation of Indians are familiar with the coffee Boards

own Indian coffee House chain, but these have turned too decrepit to serve

the purpose any more. Branded coffee retailing in India has picked up. Coffee

has moved to be a social drink. Coffee retailing is an example of a change in

the consumer lifestyle. The key players presently are Barista, Coffee Day,

Bru, and Nescafe etc The fast food retailers who have long offered milk

shakes and ice creams have also started offering coffee.

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CHAPTER II

Review ofReview of

LiteratureLiterature

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Review of literature

The organized retail business in the country is witnessing a boom and

studies by McKinsey and Fitch point out that it is set to grow exponentially in

the coming years. Market liberalization, a growing middle-class, and also the

potential consumers had created a golden opportunity for the multinational

companies to enter in the coffee retailing business. Not only in India but also

in world the demand for coffee are promising. In the recent years the chain

food store as well as Coffee cafes and vending coffee are mushrooming in

India.Most of these chain food stores and cafs had succeeded in creating a

strong relation ship among the people like coffee day, Barista Caf, Sweet

Chariot etc. KSA Technopak estimates that size of the organized coffee

retailing in India covers Rs 250 crores industries. The Industry is currently

growing at the rate of 10-12 per cent annually. Moreover with the fast food

industry in India experiencing an impressive growth rate of 40 per cent, coffee

consumption is poised to grow further. Coffee retailing in India started with

the launch of Caf Coffee Day in 1996 and Coffee Day Xpress in 1999

.

Till the end of the decade, the performance of the retail outlets was just

about average with 14 outlets in 5 cities. Today with a rise in the coffee

culture the company has more than 800 outlets across the country and

targeting 1500 outlets by the financial year end. Prior to mass scale organized

coffee retailing in India, the beverage was popular only in the Southern part of

the country. The rest of the country was primarily a tea-dominated terrain and

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this fact still remains unchanged. But what has changed over the years is the

target market.

The target segment youth and young at heart were looking for a place,

where they could sit, relax, talk and enjoy a quiet moment with friends and

family. In the conventional Indian market, such places can only be found in

the form of local tea stalls, and college and office canteens. This dearth of

decent hang out places is what the coffee retailers cashed upon. These caf

chains in India have been positioned as destinations, offering both lifestyle

and coffee, at affordable prices.The expansion model initially concentrated in the metros. Coffee

retailers first experimented with their ideas in the larger cities and then

expanded to regional centers. For instance, in Delhi and Mumbai, Barista and

Coffee Day are now established brands. Thus, it can be said that, the metros

are in the stage II of coffee retailing, whereas in the smaller towns are still in

the initial stages.

The stage II in the metros is of consolidation and maturity. It all started

with offering good coffee at a place, which is both attractive and comfortable.

Now that most retailers are in the second stage, their aim is to strive to

develop it into a theme restaurant and offer more than a coffee and ambience.

The salient feature of the second phase in coffee retailing is the emergence of

newer formats.

Coffee Consumption In India - Potential Opportunity for Growth

Market research studies point out that the following areas have potential for

growth;

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Filter coffee in the north; when compare the large towns, the north and west

zones have a clear increase in penetration of filter coffee. This increase the

consumption of the beverages in a nontraditional coffee region such as north

can be partly attributed to a growing caf culture. This is a good trend, as

coffee marketer to look and can extending their brand beyond coffee in the

low penetration zones and the base of the coffee consumers.

Cold coffee in the north; the north has an increased consumption ofthe cold

coffee in summer, showing 60% consuming cold coffee at least once a week

in summer.Occasional consumers; There is more potential in the north and south, where

occasional consumers are high in the number (28%&40%respectively). There

is also potential to increase the no of cups consumed by light drinkers, who

account for 15% of the population.

Rural area in south; The rural area in the south shows a good potential for

coffee consumption. Currently coffee penetration is at 70% and yesterdays

consumption at rural south India. This can be improved to match the

penetration of tea, at 87% and yesterdays consumption at 75%. Marketers can

consider increasing the consumption of instant coffee in the states. In the rural

south states like Andhra Pradesh and kerala that have a current low

consumption of filter coffee can be targeted for increasing consumption.

Coffee production and consumption are polarized. This is evident from the

fact that producing countries consume hardly about 27% of production while

the rest is consumed by the developed consuming countries. Coffee is

predominantly an export-oriented commodity for majority of the coffee

producing countries. As such domestic consumption in producing countries

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has always taken a back seat. The all time low green coffee prices in the past

few years due to huge annual surpluses did not translate into lower retail

prices or much of promotional efforts to increase the consumption of coffee

worldwide. This could be gauged from almost stagnant annual consumption

growth of just about 2% in the last one decade.

The global demand in coffee and trend in coffee consumption is a more

focused area in India to go further. Coffee is accepted as a social drink in

every where so India has to misuse the trend to handle coffee retailing.

Global Coffee Demand

Global coffee consumption in 2008 is estimated to reach 121.5 million

bags, up from 111.7 million bags in 2007. The consumption in coffee

importing countries is estimated at 90.2 million bags in the calendar year

2008. A major proportion is consumed in E.U (44%), U.S.A (25%) and Japan

(9%). The average per capita consumption in importing countries was 4.33 kg

in 2007-08. Consumption growth in importing countries in recent years has

also been disappointingly slow-considerably slower than might have been

expected, given the collapse of world prices. Taking the case of coffee

production only in Brazil and Ethiopia domestic consumption accounts for a

significant share of their total production. Brazil is not only the world's largest

producer but it is also the world's second largest consumer after the US. It

currently consumes around 13 million bags a year (with a per capita

consumption of 4.9 kg a year) Indonesia, Mexico, Colombia and India are the

other producing countries which shows a consumption level of over one

million bags.

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Consumption Trend in India

Coffee consumption has shown an annual average growth of 3.14%

between 1951- 2007. In absolute terms the off take in domestic market has

grown from about 18,400 tones to about 70,000 tones during 2006. For

various reasons the decade between 1991- 2000 did not show any noticeable

growth in consumption.

This period coincided with a surge in domestic retail prices in India.

Table 2.1 shows the domestic consumption of coffee as well as per capita

consumption for selected points in time. Most of the earlier growth has comefrom Robusta than Arabica. This is expected in view of higher growth in

production of Robusta and its substantial lower prices. Though, during the

pool marketing, the period between 1981-90 saw higher volume of

consumption (well above 50,000 MT and peaked about 63,300 MT) highest

growth rates were achieved. During the period 1951-60 and 1971-80 at a CGR

of 7.23% and 3.28% respectively. The rates of increase in consumption were

also higher at 1596 MT P.A and 1375 MT P.A respectively.

Table.2.1: Coffee Consumption by type and per capita consumption in

India

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From the table 2.1it is understood that the coffee consumption is

showing an increasing trend over the years. As a result of the increasing trend

in the coffee consumption may leads to increase the growth rate. Over the

decade the coffee consumption is showing the increasing trend. The per capita

consumption declined to 0.069 kg in 1971 and there after in 1981 it increased

up to 0.074kg. Then again it declined in 1991 and 2001.

Over the decade the highest coffee per capita consumption reported in

the year 2008 by about 0.091kg. Year 2001 witnessed the lowest rate ofgrowth of milk production, which is only 0.062kg of the previous years

production.

Table.2.2

Coffee Consumption by type and per capita consumption (All India)

Year Coffee Consumption(MT) Per Capita Consumption(Kg)Arabica Robusta Total

1951 14857 3526 18383 0.051

1961 17293 16580 33873 0.077

1971 20387 17517 37904 0.069

1981 28586 22210 50796 0.074

1991 37500 17500 55000 0.065

2001* 34000 30000 64000 0.062

2002

*

34000 34000 68000 0.0662003* 33800 36500 70300 0.068

2004 34600 37500 72100 0.073

2005 36000 38500 74500 0.081

2006 37800 38650 76450 0.087

2007 38900 38748 77648 0.088

2008 39500 39546 79046 0.091

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Annual Growth rate and trend in coffee consumption by decades in India

Growth rate and trend in consumption by decades in India

Years Mean (MT) GR (%)

1951-60 23188 7.23

1961-70 35462 0.69

1971-80 41433 3.28

1981-90 55538 1.16

1991-2000 52500 0.48

2001-2007 43085 3.14

Recent market research studies affirmed that coffee consumption in India, by

and large is an urban phenomenon with an urban and rural divide of 71% and

29% respectively. Among the type of coffee consumed it was almost equally

divided between instant (soluble) and filter (Roast and ground) coffees though

the proportion of instant coffee is very high in non-south.

Attitude of the Indian coffee consumers

The Coffee Board has commissioned market research studies in 2001 and

2003 to understand: the habits and practices with respect to coffee

consumption; coffee consumption by location and form; share of Coffee in the

daily basket of beverages consumed etc. The attitudes towards coffee and

drivers and barriers to coffee consumption were studied in 2001. The salient

results of these studies are as follows:

Coffee at home is significantly different to coffee outside.

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It is interesting to observe that rating for Coffee outside home is better

than Tea outside home, specifically in the North and the east.

Restaurant Coffee rated better on quality in the West and South,

particularly when compared with the East.

Coffee from vending machines rated significantly more satisfactory in

the North as compared to the East or the West.

In the weak Coffee markets defined as the markets in the North, East

and West- the key barriers to Coffee appear to be its bitter taste (East),

its inconsistent taste outside. High price of coffee is also felt as a barrier in the South and the North.

Attitude towards coffee available outside of home is least favorable in

the East

The knowledge levels on Coffee appear to be relatively weak in the

North and East where consumers

- Do not know how to make filter coffee

- Do not know what chicory is

- Would make filter coffee if they knew how to make it well (East)

Consumer in the North also believe that making filter coffee is time-

consuming

While consumers in the North believe that Instant coffee is convenient

and tastes good the seasoned coffee consumer in the South believes that

all Instant coffee contains chicory and that filter coffee is the gold

standard in coffee.

Respondents in the North, followed by East, appear to be most

positively inclined to consume more coffee at home if - The price was

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Yesterday consumption of coffee is relatively lower with 19%

consuming it yesterday (when compared to 85% for tea). Yesterday's

consumption was the highest in the South at 31 % while it ranges

between just 35% in the weak coffee zones of North, East and South.

Yesterday's consumption is the highest among the 1524 and 35-44 age

group.

When compared to consumption of other beverages yesterday, coffee

comes in third, after tea and plain milk. Among other beverages,

buttermilk, natural beverages and Carbonated Soft Drink are morepopular with more than 10% of respondents consuming these beverages

yesterday.

Coffee is consumed as a first cup only by 23% of coffee drinkers even

in the traditional market of the South.

Coffee has a 10% share of throat at the national level, with negligible

shares in the north, east and west zones, (1% or less). However, coffee

performs well in the south, recording a share of 18%, the highest after

tea at 45%.

Per capita consumption of coffee (among all respondents - both

drinkers and non drinkers) is 0.33 cups against 1.77 cups for tea.

However, coffee consumption among drinkers at 1.76 cups compares

favorably with that of tea at 2.1 cups. This would point to the fact that

coffee is consumed as much as tea (among drinkers). If coffee volumes

have to compare favorably with that of tea, the base of coffee

consumers needs to be increased.

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About 41% of the respondents are non-drinkers of coffee. The potential

for growth lies with occasional drinkers who constitute 40% of the

population. The potential is more in the north and the east zones. The

proportion of non-drinkers of coffee increases from Socio Economic

Class (SEC) A to C, while that of occasional and light drinkers

decreases. Coffee thus seems to be more a beverage of the upper SECs.

The proportion of non-drinkers is the highest in the oldest age group of

55+ years. Amongst coffee consumers in the rural areas, a majority

(43% of all adults) is light drinkers, consuming 1-2 cups everyday.About a fifth of rural consumers consume coffee occasionally.

The average number of cups of coffee consumed increases marginally

from summer to winter.

Visiting cafes is not a frequent habit. Of all respondents surveyed, about

12% visit cafes and there is a greater tendency among the upper SECs

to visit cafes. Of all the respondents, about 10 % have ever visited

cafes; this proportion is higher among men and the younger age groups

(15-34 years).

Around 65 % of households buy instant coffee and only 18% buy filter

coffee

Among filter coffee drinking households, 49% are branded coffee

drinkers and 51 % are unbranded coffee drinkers. In the South, filter

coffee is bought mostly from R&G outlets.

A majority of the rural households (71 %) buy packaged and branded

coffee powder of those buying branded/ packaged coffee powder, 47%

buy instant coffee and 53%, filter coffee.

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Coffee-houses are regarded as centers of scientific education, literary and

philosophical speculation, commercial innovation and, sometimes, political

fermentation. Coffee-houses are hotbeds of financial innovation and

experimentation, producing new business models in the form of innumerable

novel variations on insurance, lottery or joint-stock schemes. It was at coffee-

houses that commerce and new technology first became intertwined. They are

outlets for a stream of newsletters, pamphlets, advertising free-sheets and

broadsides.

The contrast between coffee and alcoholic drinks was reflected in the

decor of the coffeehouses that began to appear in European cities, London in

particular. They are adorned with bookshelves, mirrors, gilt-framed pictures

and good furniture, in contrast to the rowdiness, gloom and squalor of taverns

Coffee came to be regarded as the very antithesis of alcoholic drinks, sobering

rather than intoxicating, stimulating mental activity and heightening

perception rather than dulling the senses.

Its popularity owed much to the growing middle class of information

workersclerks, merchants and businessmenwho did mental work in

offices rather than performing physical labour in the open, and found that

coffee sharpened their mental faculties Coffee, however, was heralded as that

Grave and Wholesome Liquor, that heals the Stomach, makes the Genius

quicker, Relieves the Memory, revives the Sad, and cheers the Spirits, withoutmaking Mad.

The kinship between coffee-houses and the internet has recently been

underlined by the establishment of wireless hotspots which provide internet

access, using a technology called Wifi, in modern-day coffee shops. Such

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hotspots allow laptop-toting customers to check their e-mail and read the news

as they sip their lattes.

They are adorned with bookshelves, mirrors, gilt-framed pictures and

good furniture, in contrast to the rowdiness, gloom and squalor of taverns

Coffee came to be regarded as the very antithesis of alcoholic drinks, sobering

rather than intoxicating, stimulating mental activity and heightening

perception rather than dulling the senses. Its popularity owed much to the

growing middle class of information workersclerks, merchants and

businessmenwho did mental work in offices rather than performing physical labor in the open, and found that coffee sharpened their mental

faculties.

My preliminary review of literature describes that there is extensive

literature available on various aspects of Coffee at Coffee day Xpress products

across the India, but there has been little focus on research regarding Product

quality and sales mans behavior on the purchasing decisions of the coffee day

Xpress outlets. It applies field based approach to bring out the strategies

which influences the sales promotion of coffee at Coffee day Xpress outlets. It

discusses the implications of the finding with regards to the role of sales man

and product quality in making purchase decisions for further research. Not

only these two factors but also so many factors can influence the purchase

decisions. Here I deeply think about these two variables and making a

conclusion to take up this research work at coffee day.

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CHAPTER II

Company

Profile

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COMPANY PROFILE

Amalgamated Bean Coffee Trading Company Ltd is perhaps one of

the two fully integrated coffee companies of Asia, involved in all sectors of

Coffee from plantations to retailing to exports.

Amalgamated bean coffee trading company Ltd (ABCTCL), popularly

known as coffee day is Indias largest coffee conglomerate, an RS.450 crore

ISO 9002 certified group company. Amalgamated Bean Coffee Trading

Company, better known as "ABC", is one of the largest exporters of green

coffee from India since 1999. ABC's business mission has its roots in coffeeknowledge. This culminates into an incessant effort to adapt to dynamics of

the coffee market resulting onto a leadership role. ABC has invested well into

a Research and development on coffee quality that supports our domestic

promotion of various blends of coffee and augments our export activities.

Company Background

ABCTCL, promoted by a first generation entrepreneur- Mr. V.G.Siddhartha,

was incorporated in 1993 to export coffee beans. In order to move higher up

the value chain, the company forayed into retailing of coffee by opening retail

shops in the name of 'Coffee Day' in 1995 and cafs in the name of 'Caf

Coffee Day' (CCD) in 1996. The company also acquired a coffee curing

facility 'Ganga Coffee Curing Works Ltd' in the year 1996, and thus became

an integrated coffee retailer.

The company has won various recognitions like 'the second most

respected company in food retail in India by Business World, 2006; 'Food

and Services retailer of the Year' and 'Exclusive Brand Retailer of the Year' by

ICICI Bank Retail Excellence Awards, 2005; and No.3 food and services

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brand' in Business World and Brand Equity Surveys, 2005. The company has

also won all the top awards in the India Barista Championship for three years

in a row (2003-2005). Additionally, Mr. V.G. Siddhartha was recognized by

the Economic Times as 'Entrepreneur of the Year' in the year 2003.

Operations of the Company

ABCTCL has six distinct business divisions, with each division

complementing the overall business of retailing coffee, and contributing to the

profits of the company. A brief description of the six business divisions is as

follows:

1.Caf Division(Caf Coffee Day): this division has started its operation in

1996. This division retails coffee through specialty outlets, positioned as the

neighborhood cafes offering attractively priced products to make drinking

coffee a warm and pleasurable experience. It contributed around 43% the

revenue of ABCTCL and 68% to PBIT, during FY07.

a lot can happen over coffee

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2. Fresh and Ground (F&G) Division: This was one of the first divisions

started by ABCTCL for retailing coffee. Started in 1995, the division retails

freshly roast and ground coffee powder, as it offers a superior taste, as

opposed to packaged/instant coffee. The outlets offer over 22 distinct varieties

of coffee using both Arabica and Robusta varieties. The division contributed

9% to the company's total revenues and 24% to PBIT for FY07.

3. ABC Exports: ABC Exports has its operation in the year 1999.The

division forms the backbone for the company's operations. The company has

38 exclusive agents who collect the coffee and bring it to the curing works atHassan and Chikmagalur on a commission basis. The curing, roasting and

packing of the coffee is done in-house at the company's facilities in Hassan

and Chikmagalur. Once processed, the coffee is exported to countries like

Europe, USA, Japan and UAE as well as retailed locally.

The company earned 36% of revenue and 7% of is PBIT from this

division, during FY07.As above; ABCTCL's revenues are driven mainly by

caf and PPE divisions. The margins, however, are driven mainly by Caf and

F&G divisions. The company chalked out a substantial expansion plan across

all the above divisions. The said plan is to increase the business by increasing

the number of outlets of each format and providing high value-added products

in order to boost the margins. The expansion plan would cost approximately

Rs.500 crore and would be funded by a mix of debt, equity and internal

accruals.

4. Take Away: In line with its objective of providing an authentic Coffee

experience, ABCTCL ventured into vending machines that provide fresh filter

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coffee as against the instant coffee provided by most other players. The

machines, developed indigenously by ABCTCL, vend coffee either using

coffee decoction or from freshly ground coffee beans, both supplied by the

company itself. This division contributed 6% to the total revenue of the

company and 9% to PBIT during FY07.

5.Coffee Day Perfect division: Coffee Day perfect started its operation in the

year 2003. Perfect concentrated mainly on the FMCG Packaged Coffee.

6. COFFEE DAY XPRESS: Coffee Day Xpress division aims at bridging

the need gap between the leisurely cups and a bite at the Caf and a quickdrink at a vending point.

About Coffee Day Xpress

The Coffee Day Xpress is Coffee On the Go! Concept that makes you

ask more for

Coffee Day Xpress is a unique concept of convenient cafe, an idea that

feeds a world that's continuously in transit.

The Coffee Day Xpress kiosk is a sanctuary where the harried urbanite

can pause for refreshment before getting on with life. Retail custom- made for

the 21st century. Catering to a world that needs coffee on the go! at high

traffic locations. With hot and cold beverages and a variety of ready- to- eat

snacks.

Amalgamated Bean Coffee Trading Company Ltd or ABC, as it is

better known is a fully integrated coffee company with a rich heritage that

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stretches over a century. Its endeavors find expression from coffee plantations

to innovative retail concepts and even exports.

To ensure that it remains a dominant force in the coffee sector, ABC

has invested extensively in Research & Development to ensure quality coffee

blends.

The main reason to introduce the Coffee Day Xpress is to tap that

consumer market segment that prefers to spend between Rs.10 to Rs.30 on

coffee. It is Coffee on the Go! Concept. Other reasons increase the brand

awareness in the customers about the Coffee Day. The Company is basically

using push Strategies for the sales of the products. Walk in rates of the

customers is about 3000 people per day in Bangalore. The people they

employee at the Xpress outlets are educated as well as trained. Turnover of the

Xpress Division is around 40 crores which accounts for approximately 15%

for the company.

At Coffee Day Xpress we believe in the complete refreshing experience.

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Company has the entire range of coffee. Cappuccino. Latte. Espresso.

Moksha, and a host of beverages, including teas, shakes and even hot

chocolate.

To round off the experience, you could also tuck into a variety of snacks

(like sandwiches, submarines, burgers, puffs, samosas, wraps and

pastries).Truth to be told, the Coffee Day Xpress range of food varies from

region to region. What the company tries to do is to incorporate regional

favorites in our menu and to balance the salt with the sweet. The global and

the local tongue-tickling tastes to suit all palettes.

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Coffee Day- Prestiges Outdoor Outlet at Garuda mall

Coffee Day Xpress Indoor Outlet

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At the busy city crossroads, between home and office, when there's notenough time for hot cup of coffee or a leisurely meal, you can trust a Coffee

Day Xpress to provide fast, fresh, hygienic, convenient-to-eat and affordable

food & beverages.

Spectacular success has greeted Coffee Day Xpress at:

Shopping malls

Supermarkets

Multiplexes

Corporate

Airports

Railway stations

Depots

Petrol pumps

Parks

Getaways

Educational institutions...

In a short period of just three years, the Coffee Day Xpress has managed to

excite customers in 18 cities across India. With a growing presence in airports

and the railways, Coffee Day Xpress is perhaps the only national coffee brand

that is capturing the imagination of modern resurgent India.

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Coffee Day Xpress is a profitable lifestyle brand where the accent is on

being quick, convenient and accessible.

Customers in a hurry must be able to grab a coffee and a snack even

while they are on the move You can partner with us as a franchisee. Or if

you are a corporation, you can leverage our brand to promote yours. The

possibilities are endless and the rewards great.

Cash in a flash for Entrepreneurs

Transform a 60 to 100-feet-square kiosk into a money-vending

machine. Coffee Day Xpress is perhaps the only low investment, high returns

business, where you pile up your profits right from the word go. The low-risk

investment, which is 90% refundable and 10% goes as royalty fees, entitles

you to a plug-and-play kiosk fully equipped with all the machineries - fully

operational within 7 to 10 days of the franchise agreement being signed.

It can truly be said that no other brand growing through the F&B

franchising route offers so much for so little. All you need is a hunger for

success, a high-traffic location and a little investment. All the rest like the

training and support is provided by the Coffee Day Xpress brand. And you

are ready to rake in the big bucks from Day 1.

With over 500 successful entrepreneurs spanning the length and breadth

of India, Coffee Day Xpress is poised for a growth curve that's creating new

benchmarks in the F&B franchising business. Speckled across the urban cape

of India's leading citiesthere's one sign that beckons entrepreneurs who

want to book profits.

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With a product portfolio that embraces hot and cold beverages, and a

snacks menu that stretches from burgers, rolls, submarines and sandwiches to

brownies, pastries, puffs and samosas, Coffee Day Xpress is the one take-

away F&B format that caters to the needs of all customers for whom time is

money.

The format has been known to work spectacularly well at locations

like shopping malls, supermarkets, multiplexes, travel termini, petrol pumps,

parks, educational institutions where large numbers of people congregate.

Convenient and oh-so-cool! For Corporate

Invest in happier employees. The in-corporate Coffee Day Xpress kiosk

is the hub of activity. It's where employees meet up, hang out and chill in

between bouts of work. It's their gas station and adds a little sparkle to their

work life.

The hot or cold coffee, the thick shake; the burger, the roll, the

submarine, the sandwich, the pastry, the puff and the samosa all act as quick

pick-me-ups.

Best, perhaps, of all is the fact that Coffee Day Xpress makes for

content, well-fed employees who see their work place as convenient and oh-

so-cool. Low on space, installed with minimum effort, a Coffee Day Xpress

kiosk (occupying a mere 60 sq ft) is a plug-and-play model that's just the

solution for canteen needs.

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Most importantly, an in-house Coffee Day Xpress kiosk means better

employee morale, shorter coffee breaks. It's one sure-fire way of taking care

of your people.

Coffee Day Xpress is a small format convenience caf serving the

needs of people 'on the go'. These kiosks are located in areas that have high

people traffic- like theatres, malls, airports, petrol pumps, educational

institutes, railway stations etc. The key differentiator between a caf and a

kiosk is that Kiosks do not have any provision for people to sit and eat. This

division contributed around 5% to the company's total revenues and 2% to

PBIT during FY07.

Industry Outlook; The importance of the coffee industry can be

gaugedby the fact that coffee is one of the largest tradedcommodities in the

world. Over 90% of global coffee production takes place in developing

countries while most consumption takes place in industrialized economies.

The Indian coffee industry represents a microcosm of the global industry

accounting for only 4%of world production. India has production base of

approximately 4 - 4.5 million bags against world production of 117 million

bags. The total area planted under coffee in India is 3, 54,000 hectare (ha.)

with 3, 27,000 ha. In production spread mainly across 3 southern estates viz.,

Karnataka, Kerala and Tamil Nadu. The major varieties of coffee are Arabica

and Robusta and both are produced in India. About 70-75 percent of Coffee

production is exported; approximately 4% of total global coffee exports,

leaving the balance for domestic consumption. The biggest consumers of

Indian coffee are Russia, Italy and Germany, accounting for approx. 49% of

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Indian exports. The domestic demand for coffee has been growing slowly and

is at 80,200 M.T.

CHAPTER IV

ResearchDesign

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RESEARCH DESIGN

Statement of the problem

In the service encounters especially for a niche category like Coffee

Day Xpress in Bangalore city, which focus on youth as their clients, despite

the quality, the salesmans behaviour plays an inevitable role in purchasing

decision.

Here I am trying to find out the role of salesmans behaviour on linear

relationship between the product quality and the purchasing decisions ofCoffee Day Xpress products in Bangalore city.

Purchasing Decision

Salesmans Behaviour

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Product Quality


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TITLE OF THE STUDY:

Influence ofProduct Quality and Sales Mans Behavior on the Purchasing

Decision

A study conducted for Amalgamated Bean Coffee Trading

Company Ltd at its Coffee Day Xpress Outlets in Bangalore City.

Research Objectives:

To study the influence of product and salesmans behaviour on the

purchasing decisions of the customers of Coffee Day Xpress outlets.

To evaluate customers attitude towards Xpress outlets products with

respect to his/her perception of Xpress brand.

To identify the influence of availability of Xpress products in customers

purchasing decision process.

Variables under study

Dependent variable: - Purchasing decision

Independent variables: - Product Quality, Salesmans behaviour and

availability of Xpress products.

Hypothesis 1

Ho: No significant relation between product Quality and purchasing decisions.

H1: Significant relation between product quality and purchasing decisions.

Hypothesis 2

HO: No significant relation between service of the sales man and thepurchasing decision.

H1: significant relation between service of the sales man and the purchasing

decision.

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Hypothesis 3

Ho:No significant relation between availability and accessibility of Xpress

products and purchasing decisions.

H1: significant relation between availability and accessibility of Xpress


Scope of the study

The result obtained cannot be generalized to the whole population as

the methods for arriving at the sample size and selecting the sample were

unempirical. The findings are restricted to the particular sample, as thereexists a difference in target customers and attributes among them.

This study will help the to identify the product quality and salesmans

behavior of the Coffee Day Xpress products need to be improved so that it

can provide customers with better quality products. The study will also help

the management to decide how to increase the sales of the coffee products,

walk-in rate of the customers, brand awareness & market share of the Coffee

Day Xpress products.

Research methodology

The research was designed to achieve the above mentioned objectives

and the following tools were used to collect the required data.

Sampling method

Sampling frame

Sample Size

Sampling technique

Data collection Methods

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Sampling method

A sample chosen for the present study was simple convenience sampling.

Sampling frame

The sampling frame of the present study is the customers of 30 outlets in

Bangalore city.

Sample size

The total sample size for the data collection of the research was 190

respondents. A sample of 190 questionnaires was administered to the

customers with respect to the customers buying the Coffee Day Xpressproducts.

Sampling technique

The sampling technique followed was, administrating these 190

questionnaires to the customers selected on convenience basis in the absent of

any data base about the customers. That is with respect to the customers

buying the Coffee Day Xpress products.

Data Collection Methods:

The sources of data collection are:

1.Primary Data:Primary Data is the first hand information collected during

the research. These are the original observations collected from the targeted

segment of different methods. The Primary Data is collected through

structured questionnaires and Direct Interview.

2. Secondary Data: The Secondary Data is collected through the materials

given by the organization, books, journals, articles, Business magazines and

Internet.

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Tool for Data Collection:

Structured Questionnaires were the tools for data collection. The

Questionnaire was neatly designed and constructed for the purpose inline with

the objective of the study. Questions related to objectives of the study, form

major portion of the questionnaire. It mainly consists of multiple choice

questions so that respondent can mark one of the several choices of answers.

Questionnaire is formed based on the ideas obtained from researchers

discussion.

Area of enquiry: The research investigation was held at various Coffee dayXpress junctions in Bangalore. Spectacular success has greeted Coffee Day

Xpress at:

Shopping malls

Supermarkets

Multiplexes

Airports

Railway stations

Depots

Petrol pumps B

Parks

Getaways ...

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Data analysis and inference: The data generated from the research survey

would be subjected to rigorous analysis and inferences would be drawn

accordingly.

Research Limitations

My research investigation is beset with the following constraints:

1. The study is carried out considering only Bangalore city i.e., limited

boundary, so it will face lack of depth study.

2. Feedback from respondents is limited 190 persons that is sample size is190.

3. Sample may be biased or may not represent the true representation.

Only the respondent co-operation and true information in the study will

only give a clear picture.

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CHAPTERV

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Analysis &Interpretati

on

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DATA ANALYSIS

This chapter deals with the analysis of data and evaluation of the

performance of the coffee day Xpress outlets in Bangalore city. Data collected

from Bangalore city. Coffee day Xpress has presently 130 in Bangalore city

and Mysore road alone. Out these 130 outlets 41 are franchisees and

remaining is company own outlet.

For the data collection, direct interview method was used with structured

questionnaire. Similarly, a sample was chosen for the research and was chosen

by a simple convenience sampling. The research investigation will be at

various Coffee day Xpress junctions in Bangalore. Spectacular success has

greeted Coffee Day Xpress at:

Shopping malls

Supermarkets

Multiplexes

Airports

Railway stations

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Table 5.1: Age wise distribution of respondents

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid < 18 years 17 8.9 8.9 8.9

19-24 years75 39.5 39.5 48.4

25-30 years64 33.7 33.7 82.1

31-40 years14 7.4 7.4 89.5

41 & above20 10.5 10.5 100.0

Total190 100.0 100.0

Source; sample survey

Figure 5.1

Age Group Of Respondents

Age Group

41 & above31-40 years25-30 years19-24 years< 18 years

NoOfRespondents

50

40

30

20

10

0

Inferences

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As per the study majority of the coffee day Xpress consumers belongs

to the age group 19-24 years i.e. 39.5% of the total sample. From the data it is

to be understood that the coffee day Xpress became a good place to taste the

quality food. Only 10.5% come under the age group of above 41 years.

The age wise distribution of the coffee day Xpress consumers in Bangalore

city can be depicted with the help of the diagram.

Table 5.2: Gender of Respondents Visiting Coffee Day Xpress Outlets

GENDER Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Female 67 35.3 35.3 35.3

Male 123 64.7 64.7 100.0

Total190 100.0 100.0


Figure 5.2

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Gender Of Respondents Visiting Coffee Day Xpress

m

f

Inferences

The above table shows the gender wise distributions of the Xpress

consumers.64.7%of the Xpress consumers are male. Only half of them are

female.

Table 5.3: Occupation of Respondents Visiting Coffee Day Xpress Outlets

Profession Frequency Percent

Valid

Percent

Cumulative

Percent

Valid

IT Professional 50 26.3 26.3 26.3

BPO Jobs18 9.5 9.5

35.8

Engineer11 5.8 5.8 41.6

Student60 31.6 31.6 73.2

Others51 26.8 26.8 100.0

Total190 100.0 100.0


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Figure 5.3

Job Of The Respondents

Others

Student

Engineer

BPO Jobs

IT Professional

Inferences

The above table shows the majority of the respondents is students,

i.e.31.6% and 26.8%include in the category of others like bank professionals,

business etc. only 5.8%is in the category of engineer.

Table 5.4: Frequency of Respondents going to coffee outlets

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid less than 10times a week

34 17.9 17.9 17.9

10-20 times a

week52 27.4 27.4 45.3

21-30 times a

week63 33.2 33.2 78.4

31-40 times a

week18 9.5 9.5 87.9

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above 40 23 12.1 12.1 100.0Total 190 100.0 100.0


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Inferences

The above table reveals the frequency of the outlet visits. 33.2%of the

respondents visiting the coffee day Xpress outlets 21-30 times a week.

27.4%of the customers visiting the outlet less than 10-20 times a week. Only

12.1% of customers are not often on their visit.

Figure5.4

Frequency Of Respondents Outlet Visit

Frequency Of The OutletVisit

not often

2-3 times a month

6-8 times a week


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Table 5.5: Average Spending at Coffee Day Xpress at a visit


Inferences

The table reveals the average spending at coffee day Xpress

outlets. 41.1%of the customers are spending 25-75 rupees and 28.4%of

the customers are spending at average of 75-125 rupees daily. Only

12.1% of customers are spending above 125 rupees.

Spending Frequency PercentValidPercent

CumulativePercent

Valid 0-25

rupees

35 18.4 18.4 18.4

25-75

rupees

78 41.1 41.1 59.5

75-125

rupees

54 28.4 28.4 87.9

over 125

rupees

23 12.1 12.1 100.0

Total 190 100.0 100.0

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Figure5.5

Average Spending

over 125 rupees

75-125 rupees

25-75 rupees

0-25 rupees

Table5.6: Freshness and Flavor of the Xpress Products

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid stronglyagree

10 5.3 5.3 5.3

some what

agree58 30.5 30.5 35.8

neitheragree nor

disagree

80 42.1 42.1 77.9

some whatdisagree

36 18.9 18.9 96.8

strongly

disagree6 3.2 3.2 100.0

Total 190 100.0 100.0


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Table 5.7: Taste and quality of food

Frequency PercentValidPercent

CumulativePercent

Valid strongly

agree12 6.3 6.3 6.3

some what

agree66 34.7 34.7 41.1

neither

agree nor

disagree

69 36.3 36.3 77.4

some whatdisagree 33 17.4 17.4 94.7

stronglydisagree

10 5.3 5.3 100.0

Total 190 100.0 100.0


Inferences

The above table reveals the respondents opinion about the taste and

quality of the food items.36.3% of the consumers have good opinion about the

food items. Only 5.3% of consumers have negative opinion about the product

quality.

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Figure5.7

Taste and quality of food

strongly disagree

some what disagree

neither agree nor di

some what agree

strongly agree

Table 5.8: Respondents rating About the Ambience of Xpress outlets

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid strongly

agree17 8.9 8.9 8.9

some what

agree49 25.8 25.8 34.7

neither

agree nordisagree

87 45.8 45.8 80.5

some what

disagree33 17.4 17.4 97.9

strongly

disagree4 2.1 2.1 100.0

Total 190 100.0 100.0

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Inferences

The table 5.8 shows the respondents rating about the ambience of the Xpress

outlets.45.8%of the respondents are neither satisfied nor satisfied with the

ambience of Xpress outlets. Only 2.1% of the respondents are strongly

disagreeing with ambience of the Xpress outlets.

Figure5.8

Ambience of Xpress outlets

Opinion

strongly disagree

some w hat disagree


some w hat agree

strongly agree

NoOf

Respondents

100

80

60

40

20

0

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Table5.9 Opinion about Bean buddies positive attitudes

Frequency Percent

ValidPercent

CumulativePercent

Valid strongly

agree26 13.7 13.7 13.7

some what

agree61 32.1 32.1 45.8

neither

agree nordisagree

72 37.9 37.9 83.7

some what

disagree27 14.2 14.2 97.9

stronglydisagree

4 2.1 2.1 100.0

Total 190 100.0 100.0

Source: Sample Survey

Inferences

The above table shows bean buddies positive attitudes like high energy,

positive expressions and helpful attitudes. The data reveals that 37.9% neither

disagree nor disagree with the attitudes of the bean buddies. Only 2.1%have

strong disagreement.

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Figure5.9

Bean buddies positive attitudes

Opinion

strongly disagree

some what disagree


some w hat agree

strongly agree

NoofRespondents

80

60

40

20

0

Table 5.10Opinion about Bean buddies Efficient Service and Prompt Delivery


CumulativePercent

Valid strongly

agree40 21.1 21.1 21.1

some whatagree

81 42.6 42.6 63.7

neither

agree nor

disagree

48 25.3 25.3 88.9

some what

disagree21 11.1 11.1 100.0

Total 190 100.0 100.0


Inferences

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The above table shows the opinion of respondents with respect to the

efficient service and prompt deliveries of bean buddies.42.6%have the good

opinion about the service provided by the bean buddies. But 11.1% are not

happy with the efficient and prompt delivery of the products.

Figure 5.10

Opinion

4.03.02.01.0

Bean buddies efficient service and promt delivery100

80

60

40

20

0

Std. Dev = .92

Mean = 2.3

N = 190.00

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Table 5.11: Overall Service of the bean buddy

Opinion Frequency Percent Valid PercentCumulativePercent

Valid

inconvenient2 1.1 1.1 1.1

some what

convenient

23 12.1 12.1 13.2

convenient127 66.8 66.8 80.0

very

convenient

38 20.0 20.0 100.0

Total190 100.0 100.0


Inferences

The above table reveals the service of the bean buddy with respect to the order

time.66.8%of the people have the opinion that ordering time is convenient.

Only 1.1% has the opinion that service of the salesman is inconvenient.

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Figure 5.11

Opinion

4.03.02.01.0

Bean buddies efficient service and promt delivery100

80

60

40

20

0

Std. Dev = .92

Mean = 2.3

N = 190.00

Table 5.12: Opinion about the Availability of the products

Frequency Percent

ValidPercent

CumulativePercent

Valid strongly

agree2 1.1 1.1 1.1

some what

agree27 14.2 14.2 15.3

neitheragree nor

disagree

116 61.1 61.1 76.3

some what

disagree36 18.9 18.9 95.3

stronglydisagree

9 4.7 4.7 100.0

Total 190 100.0 100.0


Inferences

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The above table shows the availability of the Xpress products. Majority

of the consumers i.e.61.1% have neither satisfied nor dissatisfied with the

problems concerning about the availability of the products. Only 4.7% has

strong disagreement towards the availability of the products.

Figure 5.12

Opinion about the availabilty of the products

strongly disagree

some w hat disagree


some what agree

strongly agree

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Table 5.13Acessibility of the Coffee Day Xpress Outlets


CumulativePercent

Valid strongly

agree2 1.1 1.1 1.1

some what

agree27 14.2 14.2 15.3

neither

agree nordisagree

116 61.1 61.1 76.3

some what

disagree36 18.9 18.9 95.3

stronglydisagree

9 4.7 4.7 100.0

Total 190 100.0 100.0

Figure 5.13

Accessibility of the Coffee Day Xpress Outlets

Opinion

strongly disagree

some w hat disagree


some what agree

strongly agree

NoOfResponde

nts

140

120

100

80

60

40

20

0

Table 5.14Respondents Feelings about price with respect to brand

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Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Low 1 .5 .5 .5

moderate 14 7.4 7.4 7.9satisfactory 74 38.9 38.9 46.8

dissatisfactory 67 35.3 35.3 82.1

expensive 34 17.9 17.9 100.0

Total 190 100.0 100.0

Inferences

The above table represents the respondents feeling about the price of

the products with respect to Xpress brand. The satisfactory level about the

present price of Xpress product is 38.9% again the dissatisfactory level is

35.3%.

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Figure 5.14

Opinion about price of Xpress products

expensive

dissatisfactory

satisfactory

moderate

low

Table 5.15Recommendation of Xpress to the friends


CumulativePercent

Valid strongly

agree10 5.3 5.3 5.3

some what

agree58 30.5 30.5 35.8

neither

agree nor

disagree

80 42.1 42.1 77.9

some what

disagree36 18.9 18.9 96.8

stronglydisagree

6 3.2 3.2 100.0

Total 190 100.0 100.0

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Inferences

The above table shows the taste quality of beverage. 42.1% of the

people have the opinion that the quality of the beverages is good. Only 3.2%of

customers have the opinion that still room for improvement.

Figure 5.15

Recommendation of Xpress to the friends

strongly disagree

some what disagree


some what agree

strongly agree

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Table 5.16: Overall satisfactions of the outlets

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid strongly

agree14 7.4 7.4 7.4

some what

agree67 35.3 35.3 42.6

neither

agree nor

disagree

87 45.8 45.8 88.4

some what

disagree20 10.5 10.5 98.9

strongly

disagree2 1.1 1.1 100.0

Total 190 100.0 100.0

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Inferences

The above table shows the overall satisfaction of Xpress outlets.45.8%of the

respondents is neither satisfied nor dissatisfied with the service of the Coffee

Day Xpress. Only 1.1%is not at all happy with Xpress services.

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Figure 5.15

Overall satisfactions of the outlets

Opinion

stronly disagree

some w hat disagree


some what agree

strongly agree

NoOfRespondents

100

80

60

40

20

0

Table 5.17Correlation between Product Quality and Purchasing Decision

QUALIT

Y

PURCHAS

E

QUALITY PearsonCorrelation

1 .666(**)

Sig. (2-tailed) . .000

N 190 190

PURCHASE PearsonCorrelation .666(**) 1

Sig. (2-tailed) .000 .

N 190 190

** Correlation is significant at the 0.01 level (2-tailed).

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Inferences

The above table shows the correlation between product quality and purchasingdecision. Here r=.666 which shows a highly positive correlation between

these two variables.

Table 5.18 Goodness of Fit

Descriptive Statistics

190 .095 .176 -.208 .351

190 -.047 .176 .182 .351

190

QUALITY

PURCHASE

Valid N (listwise)

Statistic Statistic Std. Error Statistic Std. Error

N Skewness Kurtosis

Inferences

The above table showing the values of skewness and kurtosis, observed

distribution is not showing the characteristics of normal distribution. So we

can test the goodness of fit of correlation by using a non parametric test Chi-

square test.Table 5.19Chi square test

Ho-: No significant relation between product Quality and purchasing

decisions.

H1: Significant relation between product quality and purchasing decisions.

Test Statistics

115.947 108.421

4 2

.000 .000

Chi-Squarea,b

df

Asymp. Sig.

QUALITY PURCHASE

0 cells (.0%) have expected frequencies less than

5. The minimum expected cell frequency is 38.0.

a.



b.

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Inferences

The calculated value of Chi square for product quality (115.947) isgreater than the critical value (9.488) at a df (4) and the level of significance

(.05).The calculated value of Chi square for purchase decision (108.421) is

greater than the critical value (5.991) at a df (2) and the level of significance

(.05).

So we cant accept the null hypothesis hence we can accept the

alternate hypothesis. So it is showing that there is a significant relation

between product quality and purchase decisions.

Table 5.20 Correlation between service of the sales man and Purchasing

Decision

SERVICE PURCHASE

SERVICE PearsonCorrelation

1 .637(**)

Sig. (2-

tailed). .000

N 190 190PURCHASE Pearson

Correlation.637(**) 1

Sig. (2-tailed)

.000 .

N 190 190


Inferences

The above table shows the correlation between product quality and

purchasing decision. Here r=.636 which shows a highly positive correlation

between these two variables.

Table 5.21Goodness of Fit

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190 .010 .176 -.333 .351

190 -.047 .176 .182 .351

190

SERVICE

PURCHASE

Valid N (listwise)


N Skewness Kurtosis

Inferences




square test.

Table 5.22Chi square test

HO: No significant relation between service of the sales man and the

purchasing decision.

H1: significant relation between service of the sales man and the purchasing

decision.

Test Statistics

128.189 108.421

3 2

.000 .000

Chi-Squarea,b

df

Asymp. Sig.

SERVICE PURCHASE



a.



b.

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Inferences

The calculated value of Chi square for service of the sales man(128.189) is greater than the critical value (7.185) at a df (3) and the level of

significance (.05).The calculated value of Chi square for purchase decision

(108.421) is greater than the critical value (5.991) at a df (2) and the level of

significance (.05).

So we cant accept the null hypothesis hence we can accept the

alternate hypothesis. So it is showing that there is a significant relation

between product quality and purchase decisions.

Table 5.23Correlation between service of the sales man and Purchasing

Decision

Correlations

AVILABILITY

PURCHASE

DECISION

AVILABILITY PearsonCorrelation 1 .332(**)

Sig. (2-

tailed). .000

N 190 190

PURCHASEDECISION

PearsonCorrelation

.332(**) 1

Sig. (2-

tailed).000 .

N 190 190


InferencesThe above table shows the correlation between product quality and

purchasing decision. Here r=.332 which shows a highly positive correlation

between these two variables.

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Table 5.24Goodness of Fit


190 -.111 .176 .069 .351

190 -.047 .176 .182 .351

190

AVILABIL

PURCHASE

Valid N (listwise)


N Skewness Kurtosis

Inferences




square test.

Table 5.25Chi square test

Ho:No significant relation between availability and accessibility of Xpress


H1: significant relation between availability and accessibility of Xpress


Test Statistics

128.189 108.421

3 2

.000 .000

Chi-Squarea,b

df

Asymp. Sig.

SERVICE PURCHASE



a.



b.

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CHAPTER VI

Findings,Suggestion

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s &Conclusion

Chapter -v

Findings, Suggestions & Conclusion

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Synopsis

5.1 Findings

5.2 Suggestions

5.3 Conclusion

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SUMMARY OF FINDINGS AND SUGGESTIONS

Coffee Day products are found to be branded products having

significant market share in the market. They are found to be providing quality

based services to suit customer needs.

Also we have covered the behavioral aspect of consumers, their

preference towards buying the product of the Coffee Day Xpress .Thus from

the consumers preference as well as from the behavioral aspect of consumers

concerning purchasing behavior, company can plan their promotional &

service strategies based on these market research findings, in such a manner,

so as to increase the market share, reduce advertisement expenditure, increase

the brand awareness level among consumers, reduce customer complaints and

thus targeting specific segment of the market and reaching large base of

customers. In order to make more sales the quality of the items in the Xpress

form of outlet and also the bean buddies are competent. So in this context an

attempt to study the product quality and salesmans behavior in purchasing

decisions among the coffee day Xpress outlets is very important.

The main findings and conclusions arrived at as a result of the study on

various aspects have been stated in the relevant chapters. It is attempt to

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present a consolidated picture of the study connected with a review of all the

important findings.

FINDINGS

Product quality directly influences the purchasing decisions to a

great extent (r=0.666) on coffee day Xpress products.

Service of the salesman directly influences the purchasing

decisions of coffee day Xpress products. (r=0.637)

Availability and accessibility influences the purchasing decisions

of coffee day Xpress products (r=0.332)

The majority of the consumers in coffee day Xpress outlets

belong to the category of 19-24 years.

The youth especially the college students have a positive attitude

towards the coffee day Xpress products. Among the total

consumers 31.6% are college students.

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26.3% of professionals from corporate favor the coffee dayXpress products.

The majority of the customers i.e. 41.1% spending an average of

25-75 rupees daily.

35.3% of customers are visiting the coffee day Xpress outlets 6-8times a week.

42.1% of the customers have the opinion that the taste quality ofthe beverage is good. Only 3.2% of the people have an opinion to

improve the quality of the beverage.

The majority of the customers have no doubt about the quality ofthe food items, i.e. 36.3% of the customers have good opinion

about food items.

73.6% of the customers favor the present price of the products.

They are happy to pay this much of amount money to the coffee

day Xpress products. 17.9% of the respondents have the opinion

that the present price of Xpress products is expensive.

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The attitudes of the bean buddy in the coffee day outlets are alsofine.37.9% Customers have good opinion about the behavior and

service of the bean buddy. Even though 14.2%of the respondents

are saying that the attitude of the bean buddy is average.

45.8%of the consumers have good opinion about the ambienceof the Xpress outlets, and 17.4% have an average opinion about

the ambience.

42.6%of the consumers are saying that Xpress products areusually available. Even then 25.3% saying that the products are

rarely available.

The service of the bean buddy with respect to the service anddelivery time have good opinion.66.8% of the population are

convenient with the service and delivery of the bean buddy.

55.3%of the consumers usually recommend the coffee day

Xpress.

The overall satisfaction level of the coffee day Xpress is 45.8%.

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SUGGESTIONS

Based on the above findings the following suggestions can be made.

1. Although the performances of the bean buddies are satisfactory there is

still room for improvement. This can be done especially by giving more

training. The training should concentrate on the communication, body

language, behavior of the bean buddy etc.

2. The availability of the products is also not up to the mark. So the food

and beverage team should concentrate efficiency level.

3. Coffee day Xpress should concentrate on the neatness and ambience.

4. Corporate favors the food items like uppma, avalaki etc in the morning

and evening time so it should be made available to them.

CONCLUSION

The modern community of todays world has come to realize the power

of retailing with respect to the coffee industry. What ever may the

inconvenience experienced by Coffee Day Xpress consumers in the Bangalore

city and in the many places of India it is undeniable fact that Xpress has made

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a remarkable progress in the retail business by quick convenient and

accessibility in the service indeed its blessing to the people. The Coffee Day

Xpress kiosk is a sanctuary where the harried urbanite can pause for

refreshment before getting on with life. The Coffee Day Xpress Kiosks has

reduced the distance between Coffee Day Xpress consumer and his golden

dream.

BIBLIOGRAPHY

BOOKS:

Marketing Management, Twelfths Edition, A South Asian

Perspective by Philip Kotler, Kevin Lane, Abraham Koshy and

Mithileshwar Jha, Part 7, Chapter 18, Page no. 487-492.

Advertising and Promotion, an integrated marketing

communications perspective, Sixth Edition by George E. Belch and

Michael A. Belch, Chapter 16, Page 510.

Business Research Methods, Ninth Edition, by Donald R Cooper

and Pamela S Schindler.

Management of Sale and Distribution, Eleventh Edition, by Rosann

L. Spiro, William J. Stanton and Gregory A. Rich.

JOURNALS AND MAGAZINES:

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4 Ps

Business World

Business Today

ARTICLES:

Toshowe, Stanley, The Marketing Review Caf Retail, The India

chapter, Volume86,Number 336 ,Jan2005,page-36.

Coffee boom: the pros and cons of being the "popular drink at thetable": try Asking a colleague, barista, roaster or...By Johns, Sherri

Publication: Tea & Coffee Trade Journal Date: Saturday, September 1

2007

WEBSITES:

www.coffeeday.com

www.coffeedayxpress.com www.indiancoffeeboard.com

www.google.com

www.wikipedia.com

www.starware.com

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http://www.allbusiness.com/tea-coffee-trade-journal/20070901/5523061-1.htmlhttp://www.coffeeday.com/http://www.coffeedayxpress.com/http://www.indiancoffeeboard.com/http://www.google.com/http://www.wikipedia.com/http://www.starware.com/http://www.coffeeday.com/http://www.coffeedayxpress.com/http://www.indiancoffeeboard.com/http://www.google.com/http://www.wikipedia.com/http://www.starware.com/http://www.allbusiness.com/tea-coffee-trade-journal/20070901/5523061-1.html


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Dear Sir/Madam,

I am Sreious P John, pursuing PGDM. This is purely an academic study aboutthe product quality and sales mans behavior on the purchasing decisions of

the coffee day Xpress outlets in Bangalore city. I humbly request you to give

your valuable opinion about the following:

Name:

Gender: Male Female

Age :


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31-40 times

Above 40

2. What is your average spending amount at Xpress outlets at a visit?

Less than 30 Rupees

30-60 Rupees

61-99 Rupees

100-130 Rupees

over131Rupees

3. How will you respond to Coffee Day Express claims about the Freshness

and flavor of their food?

Strongly agree

Some what agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

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4. How would you agree to Coffee Day Express claims about the taste and

quality of food?

Strongly agree

Some what agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

5

Documents

Influence of product quality and sales man's behaviour on purchasing dcisions in Coffe Day