MM Case CCD

1825 Words Dec 17th, 2014 8 Pages
Coffee Wars in India:
Café Coffee Day takes on the Global Brands

By Group AC1
Divya Naik
Harshit Pandey
Mandar Rajendra Bothara
Ravi Teja Reddy
Varun Subramanian

INTRODUCTION:
This executive summary is in response to the case “Coffee Wars in India.” This involves the approach of Café Coffee Day (CCD), a division of Amalgamated Bean Coffee Trading Company Limited, in response to increased competition from Starbucks Coffee Company (Starbucks) in CCD’s home market of India. The issue CCD is looking to address is how to prevail over global coffee chains such as Starbucks entering into India’s coffee market. The crucial symptom of this hazard is a loss in market share of the market.
BACKGROUND:
CCD currently has approximately
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Due to this its products were sold in a premium price.
Its target segment was of youth from age group 15 to 30, of which 60% were its regular customer, this made possible for their staff to make an emotional connect with them to increase brand loyalty.
CCD did not adopted the franchising model. This saved a lot of their setup time, when opening a new outlet.

Competitive Challenges:
As CCD opened outlets of its own, its setup cost had been high.
Renting cost had been increasing and hence opening new stores became costly.
High attrition rate was being faced by them, attracting right talent was becoming challenge for them.
With increase in exposure towards luxury, the expectation of costumers to CCD has increased.
Café business just like fashion business, menus needs to be revamped more often, as much as once a quarter, unlike once in 2 to 3 years previously.
It became difficult for CCD to keep reasonable footfall round the clock.
A major competitive challenge that CCD has in relation to Starbuck in particular is its lack of global presence and therefore the loss of excitement that Indian culture find in the new experiences.
Starbucks have a premium image and its world no 1, so all the upper segment customer of CCD may get carried away by Starbucks
With opening of international market, competition became more intense
Lastly the store is concentrated in only two major

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