aastha project

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CONTENTS

Preface------------------------------------------------------------------------------

-----------3

Caf Coffee Day- An

Introduction---------------------------------------------------------4

Executive

Summary--------------------------------------------------------------------------6

Implements for Customer ExperienceDesign-------------------------------------------7

Branded

Experience-------------------------------------------------------------------------

-8

Product

Mix-----------------------------------------------------------------------------------15

Customer

Service----------------------------------------------------------------------------

18

CRM-----------------------------------------------------------------------------------

---------25

Store Formats &

atmospherics-----------------------------------------------------------30

CSR-----------------------------------------------------------------------------------

----------33

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The Branded Customer

Experience------------------------------------------------------35

Branded Customer Experience management

mode----------------------------------36

Designing Customer Experience

Model-------------------------------------------------37

Measuring Branded Customer

Experience---------------------------------------------39

Customer Categorization for the Office of

CCD---------------------------------------41

Experiential

Summary---------------------------------------------------------------------42

References-------------------------------------------------------------------------

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Preface

Customer satisfaction is no longer enough. Satisfied customers are not

loyal customers. They shop around-they may like you but not enough to

resist the temptations of your competitors.

Truly loyal customers cant imagine of doing business elsewhere. They are

your best advertising because they become the advocates of your

company. And to add to it they adjoin to your loyal and growing customer

base.Companies, who have such customers, have managed to create a

customer experience that is consistent and unique. Highly favoured and

valued customer experience is an asset for both the customers and the

organization. An intentional, differentiated and valuable experience is

need of the future. Creating this, takes credit on all your business.

Processes; human resources, marketing, sales, services, and operations. It

is no longer enough to air great advertising; now you must deliver on your

brand promises.

There are several innovative practices being developed in this area, oneof them being; Branding the Customer Experience. Delivering Customers

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a consistently superior set of benefits is probably the most important

driver of value.

The era demands enhancing customer satisfaction practices to transform

them into customer delight, and definitely forms the quintessential of

businesses. Service industry stands in all the more appreciation andconcern of this excellent idea. Companies are integrating all their

resources to the effect, being more responsive and intelligent about

customers what they really want? Is the philosophy that will earn you

business.

Caf Coffee Day- An Introduction

Caf Coffee Day is a division of India's largest coffee conglomerate,

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ABCTCLgrows coffee in its own estates of 10,000 acres (4047 ha). The land value

of the plantations is US$250300 million. It is the largest producer

ofArabica beans in Asia. Apart from this, the group also sources coffee

from 11,000 small growers. ABCTCL is one of Indias leading coffee

exporters with clients across USA, Europe and Japan.

Name

ABTCL was looking at a simple name that would be representative of adaily purchase of coffee - something that would denote how coffee was

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an every 'day occurrence. Therefore, the name Coffee Day. After this,

when the Coffee Day group was on the verge of completing the entire

Bean-to-Cup experience with coffee cafes being a very promising branch,

the word Caf was prefixed to Coffee Day. Hence, Caf Coffee day was

decided as the final name.

Logo

Old logo

The First Caf Coffee Day logo was a bright red cube with a green stroke

above e in Caf Coffee Day. The word Caf was made to appear

dominant to indicate Caf Coffee Days introduction of Caf culture

in India. The font used for Caf is called SLURRY the font looks as

though the letters have congealed or coagulated out of liquid.

After recognizing the buzz of conversations that invariably accompanied

the coffee being served at their tables, Caf Coffee Day introduced a new

logo with a dialogue box in it. This was to highlight the strong connection

between coffee and conversations. Another indication of the dialogue is

the two-way conversation between Caf Coffee Day and its customers.

Tag Line

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"A lot can happen over coffee" became a popular line among

youngsters. In a bid to take their coffee chain national in 2000, the

management decided to strengthen their brand pull with an appealing tag

line. Factors like ambiance, food, music, atmosphere and meeting people

were identified as the aspects that were drawing people to their cafs.

Encompassing all these factors in a single line, the sentence "A lot can

happen over Coffee", was phrased.

Vertical integration

The company is known for being vertically integrated to cut costs: from

owning the plantations,growing the coffee,making the coffee machines

to making the furniture for the outlets.

The machines cost them 1.2 lakh each, which they say is half the cost of

an imported coffee machine. The maintenance cost of CCD's machines is

also less than foreign machines.

Outlets

The first CCD outlet was set up on July 11, 1996, at Brigade Road,

Bangalore, Karnataka. Following this, CCD crossed over 1000 cafs

throughout the nation by 2011. They have a minimum of 1252 outlets.

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The number increases almost every week. A meter on their official

website (Cafecoffeeday.com) keeps continuous track of the number.

A cup of coffee is sold for Rs 50 onwards.

International outlets

Cafe coffee day has started its outlets in Karachi, Vienna and Prague.

Caf Emporio

Caf Coffee day, in June 2010, acquired Caf Emporio, a caf chain from

the Czech Republic. Cafe Emporio has 11 cafs in Czech Republic - 7 of

them in Prague and 1 each in Brno and Olomouc and 2 at Freeport-Hate.

Caf Emporio runs on 2 formats similar to CCDs regular cafs and Lounge

& Square set ups. The regular cafes are pure play cafs serving hot and

cold beverages and ready to eat snacks while the lounges and squares

come with a broader menu and elegant layouts.

Divisions

A Cup of Coffee in CCD

Veg Burger at CCD

Cafe Coffee Day's divisions include:

Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder

retail outlets.

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Coffee Day Square, a high level coffee bar in Bangalore.

Coffee Day Xpress, which runs 900 plus Coffee Day kiosks.

Coffee Day Beverages, which runs over 14,000 vending machines.

Coffee Day Exports, its exporting wing.

Coffee Day Perfect, its (FMCG Packaged Coffee) division.

Coffee Day B2C Plant ( Coffee vending machine manufacturing in

India )

Awards

CCD has won the best BREWMASTERS in the country. Its track record atthe IBC (India Barista Championship) & WBC(World Barista Championship)

is as follows:

2002: Top 3 positions at IBC & CCD represented India and won the 3RD

rank i.e. silver medal beating much fancied USA, Italy and Brazil at the

WBC at Oslo, Norway.

2003: Top 5 ranks at IBC & stood 5th at WBC at Boston, USA.

2004: Top 6 positions at IBC & resulted at WBC at Trieste, Italy.

2005 : Top 6 positions at IBC & resulted at WBC at Seattle, USA.

2006: Second and third place at IBC.

2008: Top three positions at IBC and represented India at WBC at

Copenhagen.

2009: CCD secured the first, third, fourth and Most Promising Talent

position at the IBC and represented India at WBC at Atlanta.

2010: First, second and fourth place at the IBC and represented India

at the WBC in London.

Other Awards "MOST POPULAR HANGOUT JOINT AMONGST YOUTH"

award at the 3rd GLOBAL YOUTH MARKETING FORUM 2011 Indias

Most Popular Coffee Joint at the Indian Hospitality Excellence Awards-

2011 Caf Coffee Day featured No.2 in the Food Services category in the

prestigious Economic Times, Brand Equity, Most Trusted, Peak Performers

List 2010 V.G. Siddhartha, the proprietor, won the Retail Entrepreneur of

the Year award at the TiE Retail Innovation Awards 2010. Coca Cola

Golden Spoon Awards 2010 Most Admired F&B retailer of the year (Cafesand Parlours) Most preferred Coffee Shop category award winner at the

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CNBC Awaaz Consumer Awards 2010 The Times of India Times Food

Guide Award category Best Coffee Bar Award in Gujarat from 2008

2011; The Times of India Times Food Guide Award category Best Coffee

Bar Award in Mumbai in 2007; The Times of India Times Food Guide

Award category Best Coffee Bar from 20062009 in Delhi; The Times of

India Times Food Guide Award category Best Coffee Bar in Kolkata in

2005, 2006.

Cafe Coffee Day

Type Public

Industry RestaurantsRetail coffee and tea

Retail beverages

Founded 1996

Headquarters Bangalore, Karnataka, India

Number of

locations

1090

Key people V. G. Siddhartha, Founder and

Director

Services Coffee

Revenue US$45 million

Employees 5000

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Subsidiaries Coffee Day Fresh n Ground

Coffee Day Xpress

Coffee Day Take Away

Coffee Day Exports

Coffee Day Perfect

Website CafeCoffeeDay.com

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Customer profileThe caf is meeting place for 15-29 year olds, both male and female who

are served the best coffee by friendly and informed staff, in an upliftingand invigoration ambience.

Age

Profile

Of

Customers

Frequency Of Visit

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Age Group Percentage

15-29 24.8

20-24 37.9

25-29 23.4

30-34 3.3

35-44 5.3

above 45 5.3

Frequency Percentage

Weekly 44

Monthly 16Frequently 18

Ocassionally 22


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Executive Summary

Fashioning Customer Experience-The Way to Competitive Edge is

emerging as a new business practice which endows an organization with a

holistic approach to improvise business strategies and marketing

endeavors, which create value for the organization and its customers. All

the business processes of an organization are to be integrated

intelligently to create customer-centric insights and requirements; in brief

by studying the consumer psychological needs and expectations beyondbuying a product or availing a service. There are certain elements which

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are involved in creating customer experience in an organization. These

elements are valued by customers and are the value creators and

differentiation apparatus for the organization too.

This report has been segregated into 3 parts:-Study of elements dedicated towards creating unique and favorable

Customer experience. Designing a customer experience requires

integration of all these tools and developing a responsive and

proactive approach towards gaining customer insight to fine-tune

the designing.

Extensive study of customer best practices at Caf Coffee Day to

illuminate the real time endeavours towards this concept.

A Customer Experience transformation model- Branding the

Customer Experience for Caf Coffee Day. Conceptualized on the

basis of the study on the current customer best practices at Caf

Coffee Day.

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Implements of Customer Experience Design

Brand Experience

Product Mix

Customer Service

Customer Relationship Management

Store Formats & atmospherics

Corporate Social Responsibility.


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Brand Experience

IntroductionA companys brand is a critical pillar of the enterprises long-term ability

to generate profitable results and build competitive advantage. True

cultivation of customer relationship- that results in sustained competitive

advantage and customer loyalty-requires delivering on the brand promise

at key moments of truth. Oftentimes, customers experiences during

these critical interaction directly impact their perception of the company

and potentially influence a purchase of repurchase decision. Since the

customer experience is the totality of a customers interactions with a

brand over time, brand image is directly impacted by the experiencescustomers have with a company. Product, people and process must be

built around the value and needs of the customer base in order to ensure

that the means from which the brand reaches the end-customer, ensuring

that both the externally facing customer interactions-as well as the

internal processes that enable the experiences-are designed from the

customers perspective.

Developing and maintaining a differentiated point of view that is

credible and relevant to customers:

Great brands have a different way of looking at the world from their

competitors. This differentiation is the key to appeal to their customer.

The customers highly value it and the POD stands relevant in the

customers view. This differentiation stands as a unique experience to be

associated with, and thus provides for social recognition and regard for

the customer.

Aligning processes, systems, training and development,

management structures and style with the brand

promise:

This is where the difference between great authentic brands and the great

creative advisor is seen. Organizations that put their promise to the

customer at the heart of their operations ensure that:

People are recruited who have an attitude consistent with the brand.

Han resources, operations (R&D, customer service, requisition), and

marketing work together and share best practices;

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Management style would reflect of behaviors that would be

expected of staff dealing with the customers.

Nowhere is the gap between perceived brand promise and the actual

delivered more frequently apparent than in the services industry. Too,often the internal imperative is protecting the cost base while external

promise has been about growing customer franchise.

Measuring what contributes to brand value not what

creates short-term sales:

There is not necessarily a conflict between short-term sales and brand

building but too much of the sales growth companies encourages are

often at the expense of long-term brand value. Businesses that care abouttheir brand will take into account a wide range of factors, both those

which can be best described as lag indicators, i.e those which are

indicators of historic performance-such as market share, sales turnover

and profits- and as importantly, those lead indicators which predict

market behavior-such as customer satisfaction, brand equity, and brand

value.

Emotional Branding:

The answer is simple; focus on the Customer not the organization, provide

Customers with an emotionally engaging experience and the rest will take

care to itself. They understand that the Customer Experience is the next

competitive battleground and that emotions account for over 50% of an

experience. World thought Leaders on Customer Experience, Beyond

Philosophy, led by Colin Shaw, have undertaken more than 18 months of

ground breaking research both in Europe and the US, in order to discover

the emotions that drive and destroy value in an organization.

You must design the customer experience, or the customer will design it

for you.

Tom Peters,

Business Management guru

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Caf C offee Day: Review Great brand

Imagine a good old traditional south Indian boy spending forty bucks on a

cup of coffee. CCD (thats what the youngsters affectionately call it) has

made it possible. I did my own dipstick study on a sample chosen on

convenience basis and was amused by the results.

Out of fifty people whom I interviewed- none of them said that they comehere for coffee. Most of them consider it as a hangout place (the modern

day adda) where they catch up with friends, some use it as a dating

joint, few think that its a great place for meetings and then there were

other I hate research responses like- I like the music here or I come

here to read so now would you mind.

So people come here to chat, to discuss work, to flirt and even to kill time

(all those who shooed me away with their I like reading/ I like music

responses).

And of course they do all this over a cup of coffee. Its interesting to see

that its all about the place- the experience. Coffee is just a just a

consequence of a by-product. I bet the place would do equally well even if

they were selling something else.

For many teenagers CCD has become an important part of their lives.

They see it as an extension of their own personality and I am sure even

when they grow older they would keep revisiting it to relive some of their

cherished memories (it pays to catch them young!)

CCDs business strategy has been admirable- striking a right balance

between the price and the product mix. Rather than catering to the

connoisseurs taste, it has benefited by serving to the popular taste.

Anyways coffee served in terse cafes is an acquired taste for most of us

and hardly do we go beyond a may be a latte. Then why have varieties

that common man cant even pronounce.

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Moving on to food, earlier they didnt have much to offer for snacking

except assembly line food like burgers, sandwiches, unpalatable samosas

and pastries in unadventurous flavours like pineapple, butterscotch and

chocolate. But now the food options have improved considerably (I

particularly relish the corn and spinach sandwich and my cup ofcappuccino with an almond biscotti) and the newly introduced lunch items

(like pastas, biryani, paratha with curry, etc) have received a warm

welcome especially by the corporate crowd. As a matter of fact, whenever

I am travelling to new locations and I am not being my adventurous self I

rely on CCD as my comfort food destination, I have grown to trust CCD for

their quality, hygiene and consistency of food.

Apart from food and beverages the CCD team has made a commendable

effort in leveraging the brand potential and the retail opportunity by

introducing many brand extensions like mint, cookies, t-shirts, coffee

mugs, etc, and lets not forget that they even pioneered innovative

concepts like jukebox and newsletter which were quite a hit among the

youth.

Talking about the pricing I think they have a very clever strategy- it is by

no means low-priced, but when compared to the price lists of other chains

the CCD menu looks affordable.

The book High performance entrepreneur by Mr. Bagchi wherein he haswritten about the entrepreneurial beginnings of the coffee day. A young

man named Siddhartha reinvented his coffee estate business based on

one simple yet powerful insight- he realized that as a coffee grower you

cant decide the price of the commodity but when you add value and sell

the drink you can charge according to your wish. On this realization, he

based his entire model and see where he has come today.

The key responsibility is to make sure that there is a consistent visual

language across all the outlets, i.e. all the CCD outlets should have thesame look and feel managements eye for detail, because, frankly

speaking I have been to alot of CCD outlets across geographies and I did

not see any inconsistencies on that end (look and feel).

Trusted Brand Caf Coffee Day

Naresh Malhotra, advisor and board member of venture capital firm

Sequoia Capital India, the crowning glory of his stint at retail coffee chain

Caf Coffee Day (CCD) was when the chain set up shop in the coffee

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capital of the world, Vienna, this was back in 2005, and Malhotra had

naysayers in plenty telling him how foolhardy the idea was-after all,

selling coffee to venetians was much like carrying coals to Newcastle. But

Malhotra was undeterred. I tasted about 30 to 40 cups of coffee being

sold in Vienna, and the quality was not up the mark, he recollects,reposing his faith on the century-old backbone of procuring high quality

coffee form Amalgamated Bean Coffee Trading Co, the parent of CCD, and

the entire coffee experience that the brand has successfully been able to

create. We would like to take CCD to North America as Well, announces

Malhotra, who now sits on the board of CCD, after he quits as CEO last

year. While the jury is still out on whether or not CCDs Vienna foray-

where it has three cafes- and its planned entry into other countries will

live up to expectations, one can safely say CCD has been able to create

an enviable track record and brand image in India. Starting from is first

caf in Bangalores Brigade Road in 1996, CCD now pans 102 cities with a

network of 620 cafes, out packing nearest rival Barista not only in terms

of its width of network, but also outpacing nearest rival Barista not only in

terms of its width of network, but also in the constant innovations that the

chain has institutionalized in every aspect of the business: customer

service, logistics and supply chain efficiency, and the various formats it

has experimented with depending on the target audience. The evidence of

the connect CCD has been able to make, particularly among the youth,

comes from the findings of Brand Equitys Most Trusted Brands 2008

survey-in the food services category, CCD ranks No 2, while Barista lags atNo. 5. CCD today has become the largest youth aggregator, and form a

marketing stand point, the success has come by focusing on the 3 As:

accessibility, affordability and acceptability, explains Bidisha Nagaraj,

PresidentMarketing, Caf Coffee Day. From the present 620 cafes, CCD

plans to touch more than 900 and a turnover of Rs. 700 crore-by the end

of the current financial year, which means practically launching one store

every other day this is where CCD has perfected the first. A of the 3As-

Accessibility. With presence in multiple cities, varied formats like cafes,

garden cages, lounge cafes and xpress Cafes across different catchmentslike high streets, malls, multiplexes, offices, educational premises, and

railway stations, CCD has been able to make its brand presence felt

through the sheer number of stores. Customers knew that we are an

anytime, anywhere caf, says Nagaraj. Adds a former CCD official: The

various formats picked the catchment and delivered what the customers

needed. So if its near the airport, a 24*7 caf services the traffic moving

in that catchment. Malhotra says that the aggressive ramp up started

sometime in 2001-till then, the brand had managed to grow to just 18

cages from its 1996 launch. The post-2001 period saw a near manicexpansion of the retail network. Sudipta Sengupta, senior VP-marketing &

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sales, Nirulas, and former senior GM-marketing at CCD, recalls how in

those early years, almost everyone in the company was involved in site

searching. So if prime locations were not available, corner roads and

dilapidated structures were frozen upon and long nine-year leases were

signed. The upshot: for a property rented a few years ago, CCD continuespaying rent of just Rs. 60,000 per month, explains Malhotra. Sengupta

adds that revenue sharing has come into vogue, which enabled CCD to

offer more to the landlord as business grew within the caf. Even within a

single catchment, CCD adopted a cluster approach strategy with as many

as four CCD cafes dotting a single street. The plan definitely acts an entry

barrier for competition as it means consumer get habituated to the brand,

but the logical question is how the brand insured itself against

cannibalization of footfalls. Nagaraj say this was never a problem, and

cites the example of four cages at Indira Nagar in Bangalore, all of which

are profitable, she claims, The success of these clusters indicates that

there war latent need in the market. It helps us increase the pie rather

than distribute it, she states. Malhotra believes that the clusters not only

help reinforce brand image, they also make it easier to manage

operations. Supplies can be managed, and replenishments done quickly

if one caf runs out stock and having one manager for a set of cafes

improves efficiencies and reduces costs. The cheap real estate

acquisition and cluster strategy has enabled CCD to keep its pricing

competitive. For instance, CCD has priced its vending machine coffee at

Rs 15 and its cappuccino at Rs 33-which, according to Malhotra, are lowerby 30%-40% when compared to similar offerings at Barista. CCD has also

followed a no-segmentation approach when it comes to the customer:

even though the majority of CCD patrons are in the age group of 18-29

year, the segment above 29 flocking to format is on the rise, says

Nagaraj, adding that the brand is pitched at the young and the young at

heart. And it is here that the comparisons with Barista are inevitable and

most pronounced. Also, this is where Barista appears to have lost the plot

and the phenomenal first-mover advantage it once had over CCD in a

promising market. Observers believe that the constant change inmanagement at Barista didnt help the brand one bit. A brand needs to

be focused and cannot aim to be everything that everybody wants it to

be, says consultant Harish Bijoor. Barista did not show consistency as

far as the brand promise was concerned. The change of ownership from

Turner Morrison to Tata Coffee to Sivasankaran to Lavazza further

dissipated the brand. Of the brand. Bijoor adds that CCD, on the other

hand, appealed to that genre of Coffee cravers who were young, but

didnt have to necessarily beg borrow or steal to have a cup of coffee.

The pricing, ubiquity and consistency have helped CCD. Ubiquity is veryessential for a retail brand-just a variety of good offerings is not enough,

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he says, its not as if CCD didnt face any challenges on its way from being

a largely south Indian retail chain to becoming a national brand. Sengupta

recollects the time when the format reached 100 cafes in Delhi, the

challenge being to create the brand image in a non-coffee- drinking

market. We tried to attract them with our food offerings tweaked to suitthe local palate. Once they were hooked, we got them to try coffee, she

explains. Even as offerings were innovated upon, CCD realized that the

ambience with in cafes needs constant up gradation. The tag of hip and

cool for youngsters, a place for business meetings for professionals or a

quiet evening at the lounge required constant improvements on elements

like providing Bluetooth and Wi-Fi connectivity and extensive

merchandise. And when it comes to building buzz, CCD has never resorted

to mass media advertising-its the chains 600-plus stores that talks about

the brand, says Nagaraj. In fact, the first time CCD was seen in an ad

when the brand appeared in a cobranded TV commercial for one of

Yamahas motorbikes. The chain has, in fact, struck a goldmine through

co-branding activities with brands like Levis, Apple iPod and Airtel, all on

the back of targeting the audience that CCD addresses, Nagaraj believes

the brand has been successful in providing convenience and experience at

the sometime. For now its comfortable cruising for CCD. But competition

is not far down the horizon. With foreign players like Gloria Jeans making a

foray into the country, and even star bucks waiting for a chance to get in,

customers could quickly make a beeline for the new formats. Maybe, says

Nagaraj, but with a huge market waiting to be tapped, she isnt veryworried. In fact, she says India can take up to 5,000 cafes. So no one is a

threat here the more the merrier. CCD is readying to add more formats

to its portfolio, with book cafes and even sports cafes on the anvil. We

are looking at addressing the older age group with offering like Wi-Fi and

even meal options instead of snacks, and in some time, CCD will get

Landor Associates to look at ways and means of strengthening the brand,

Nagaraj reveals. Sengupta says that in the time to come, locations will

prove to be of strategic importance for the chain. They need to keep

growing and get more footfalls. That will shut out the competition, shestates. Consistency in food and beverages across the length and breadth

of the network is critical, adds Malhotra. And just to underscore the point,

he stresses that CCD is not worried about players like Starbucks. In fact,

they have reasons to be scared of us, he says.

Coffee Day Comprises of the following Sub Brands

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Coffee Day - Fresh & Ground

Coffee Day - Vending

Coffee Day - Xpress

Coffee Day - Exports

Coffee Day - Perfect

Caf Coffee Days (CCD) appetite for expansion is growing by the day.Last week, Indias largest coffee retailer announced that it plans to openanother 100 outlets 60 cafetarias and 45 lounges across India byMarch next year, taking the total number of points of presence to 1,200.

Thats way ahead of competition. India now has 1,500 branded coffeeoutlets and CCD alone accounts for 1,090 of them. The expansion drivewould make sure that the companys unmistakable red and white logocontinues to be seen even in smaller cities. Most importantly, all theoutlets will be owned by the company and there are no plans to go for thefranchise route.

Marketing Mix Of CCD

Product:

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Caf Coffee Day product mix constitutes a wide range of products thatappeal primarily to indian coffee and snack lovers. Products have adecided Indian taste to it be it food or coffee. Most of the eatables have

been adopted to meet the Indian taste buds like samosa, biryani, masalasandwich, tikka sandwich etc. Thus they have been trying to capture theIndian taste along with classic coffee.The best selling item in summer isfrappe, which is coffee and ice cream blended together. The young peoplefavor it. In winter it is cappuccino.Their merchandising includes funky stuff like t-shirts, caps etc.

Price:

Considering that Caf Coffee Day knows its major customer lies in the

bracket of 15- 29,it has tried to derive a policy whereby it can satisfy allits customers. The price for a cup of coffee ranges from Rs.45 to Rs 80.From the time it first started its operations, therehas been only minorchanges in the pricing policy of Caf Coffee Day. The changes havebeenmore due to the government taxes than anything else.

Place:

The strategy CCD has adapted is to place a cafe in every possible locationwhere some business can be generated. This is a prime factor indetermining the success of a retail chain. Caf Coffee Day looks to caterto their target market with strategically located outlets.Their outlets are generally located in High Street/ Family EntertainmentCentres, gas stations, near Colleges etc .

Promotion:

CCD is involved in all the areas of serious consumer passion like:

Television: Caf Coffee Day held a contest around a very popularprogramme on Zee English called Friends. All the six lead characters are

shown often visiting a coffee shop. They have tied up with Channel [V]sGet Gorgeous contest.

Tie-ups: Besides that Caf Coffee Day also tie up lot of the youth brands.So they have a contest going on with Levis, another one with Scooty, Liril,latest one with Airtel Friends.

Association with movies: CCD can be seen in movies like Khakhee andMai Hoon Na.

Sales Promotion: Caf Coffee Day uses special Caf Citizen Card forrewarding Caf Coffee Days customers. It is a loyalty program to gainnew customers and retain the existing ones.

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Process:

The ordering and delivery process in CCD was earlier based on self-service. But now in most its coffee shops the waiter comes and takesaway the order and delivers the order on table.

Physical evidence:

a) Logo , image, brand: Caf Coffee Day has used bright red and greencolors in its logo. RED stands for leadership , vitality, passion for coffee.The GREEN stroke harks back the coffee plantations that they own. Caf isnoticeably larger in the logo to denote that Caf Coffee Day pioneered thecaf concept in India way back in 1996.The font looks as though theletters have congealed out of a liquid.

b) Architecture and Decor: Largely wood and granite based interiorwith young colours of today, like lime green, yellow, orange, and purplepredominate.

c) Literature: The literature provided by Caf Coffee Day is indicative ofits youthful image. Themenus, posters, pamphlets are all designed toattract young and young at heart

People:

People at Caf Coffee Day believe that People are hired for whatthey know but fired for how they behave. Motivation and personalskill are laid emphasize upon. Their employees are like friend to thecustomer but at the same time they know about the internationalstandards of hygiene and cleanliness and personal grooming.

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Product Mix at Caf Coffee Day

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MerchandisingAt Caf Coffee Day merchandise started more as a sentimental thing than

as a revenue stream, they wanted to reward coffee lovers and they

started selling mugs. People wanted to wear something that reminded

them of the caf 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.

Caf Coffee Day sells youth and trendy merchandise through its stores

and online:-

Caps

T-Shirts

Bags

Travel Mugs

Coffee Filters

Coffee Powders

Coffee Mints

Pens

Year planner 2012

Cookies

Quick Bites

Coffee Makers

Customer Service

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The customer service at CCD is commendable; service industry yearns for

excellence of service. Service industry is passing through the phase of

linking IT and technology with business. Linking people, the assets of

service industry with technology is all about bestowing standardizationand efficiency on business. Responsiveness and servitude is of paramount

importance. The human resource should have the attitude and

competency to serve. As they are point of contact with customers hence

are important drivers of customer experience. Any amount of customer

experience efforts may flat if the service standards are not met.

Linking IT with business is an important feat to be accomplished as it

equips the staff to be more responsive and serve the customer better.

Human resource diversity is also very important to fine tune into different

target customers, the quality and number of human resource has to beensured in order to meet up with the set standards. Organizations should

make sure that the employees all across the country are well trained and

proved consistent services at every outlet.

The first aspect of service i.e people is taken care of by:

Recruitment & selection

Training & development

Internal marketing

HR policies

The second imperative of linking service with technology is endeavoured

by mapping the process, proper process and delivery modes should be

defined and linked to technology to attain efficiency and standardization.

Proper technical training should be imparted to the staff for best &

resourceful use of technology.

Customer Service at Caf Coffee Day

With the boost in the number of their retail outlets, Caf Coffee Day had

to concentrate on the quality and quantity of their human resource in

order to meet up with the set standards. They make sure that the

employees all across the country are well trained and provide consistent

services at every outlet. Subsequently Caf Coffee Day has been

innovating new caf formats and exploring markets across geographies

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this requires adequate technology to integrate the retail outlets for

information exchange and for driving customer centric programs.

The human resource quality at CCD is ensured by rigorous selection

procedure and apt training & development. Proper internal marketingpractices at CCD have ensured employee communication and inter

Operatability of various business processes. Internal marketing makes

CCD responsive to Customer

EXTERNAL ENVIRONMENT

INTERNAL ENVIORNMENT

PRELIMINARY INTERVIEW

SELECTION TESTS

EMPLOYEMENT INTERVIEW

REFERNCE AND BACKGROUND ANALYSIS

SELECTION DECISION

PHYSICAL EXAMINATION

JOB OFFER

EMPLOYMENT CONTRACT

EVALUATION

Selection Flowchart at Caf Coffee

Day

Demand and meeting brand promises. The staff at Caf Coffee Day is

hired for competence, and fired for how they behave, is the recruitment

mantra.

Caf Coffee Day is expanding at a phenomenal rate. Thus the need for

right people, in the right place at right time is also increasing. In order to

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REJECTEDAPPLICATION


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meet the demand for efficient and effective workforce, Caf Coffee Day

has adopted the correct recruitment and selection procedures.

Sources of recruitment:

Caf Coffee Day has different sources for recruitment depending on thejob profile in demand. For Team Members the sources are:

In store Poster

Referrals and Walk-ins

Recruitment and selection process:For posts of team members the following rounds take place:

1. Psychometric tests, Behavioral Intelligence Test, Logical thinking

and Comprehension Test.2. Application Selection.

3. Personal Interview, Operations Interview, Regional Manager

Interview.

For Area Manager:

Recruitment and selection process:

1. Collection & review of curriculum vitae.

2. Personal interview with Regional HR Manager.

3. Personal interview with GM-HR.

Training & Development:

To ensure consistent employee performance, training and development

policies are very important-even more in service sector organizations.

Caf Coffee Day has set 12 days rigorous training procedure at their office

in Bangalore for all the assistant managers.

Whereas all the team members undergo a 3 days training at respective

head offices in North or South India.

Employee working hours

Happy employees at Caf Coffee Day are an Insignia of

Delighted customers.

Mr. Naresh Malhotra, CEO, Caf Coffee Day.

The working hours are split into convenient shifts spread over 8:30 am to

10:30 pm.

Night drops are provided for late evening shifts.

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which is the first of its kind for any retail industry all across the globe. We

have launched this system at cafes in Chennai and soon this will be a part

of our cafes all over the world.

As part of this system, all team members (Stewards) at CCD are providedwith a state of art NURIT 8010 Wi-Fi enabled Palmtop system, which is

inbuilt with a microprocessor, thermal printer and a smart card reader.

This device is used for billing and can accept credit/debit cards. Also it is

wirelessly connected to a central computer system sand can communicate

with similar devices anywhere in the world in real time. This system

makes life of the Caf staff easier and also enables management to

quickly capitalize on changing market situations all over the world to

serve the customers better.

EmpXtrack to help Caf Coffee Day deliver a delightful coffee experience

to its caf customers

Caf Coffee Day, Company that pioneered the caf concept in India, would

use EmpXtrack-human capital and Talent Management Suite to help its

employees meet their professional goals and deliver customer-oriented

performance. It is a human capital and talent management suite.

P R log (Press Release)-Feb 27,2008

Saigun technologies announced that Caf Coffee Day, company thatpioneered the caf concept in India, would use its flagship product

EmpXtrack to help its employees meet their professional goals and deliver

customer-oriented performance.

Caf Coffee Day will use EmpXtracks Goal Setting & Tracking and e-

Appraisal tools for its employees., says Ankur Arora, VP Sales, Saigun

Technologies. Speaking on how this implementation will help Caf Coffee

Day. He adds, Implementation of EmpXtracks performance management

system will enable managers and the employees at Caf Coffee Day to

track their goals at regular intervals in real time. The automation ofappraisal will help in making the process smoother, efficient and more

transparent.

Sipping the hot cup of success, Maj. Gen. B. K. Bhatia, head of

EmpXtracks HR Consulting practices, delightfully told, The addition of

Caf Coffee Day in Saiguns client list has once again proved that

EmpXtrack with its 18 Modules is an absolute match for the retail industry

as also other industry verticals.

SUSE Linux Enterprise Server Prority Support for SAP Applications

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Caf Coffee Day is using SUSE Linux Enterprise Server Priority Support

for SAP Application to ensure the highest possible levels of protection for

its ERP environment. This joint solution from Novell and SAP provides

peace of mind for Caf Coffee Day that its order management and

logistics systems are always up and running.

Results:

Improved control over extended supply chain.

Gained reliable, scalable ERP platform with low cost of ownership.

Ensured round-the-clock priority support for entire solution stack.

Customer Relationship Management

CRM is one of the most important aspects of business. Valuing and

nurturing your customer base is indispensable. Acquiring new customers

is a costly affair; it takes 6 times the resources to pool in new customers

than to maintain the existing customer base. Business is all about

relations, services industry claims of intimate customer relationships and

intangibles. Service industry is predominantly driven by people, internal

customers and external customers are to interwoven in an intricate web of

relationship. CRM activities are prime at CCD they have aptly appliedtechnology to CRM activities as a part of the same they have been

brewing up customer loyalty and incentive plans. Loyal customer are a joy

to the company; they bring you business and are the best advocates of

your company. Positive word of mouth is the most strong and well

grounded mode of advertisement, and definitely overrules all other

advertisement channels. It can earn you new customers as well. CRM also

stands as a primary tool to deliver differentiated customer experience and

establishes an emotional connect between the customers and the

organization. It adds value to the relationship and also drives focus in thecustomer- centric strategy of the organization. Its about treating your

customers special make them feel special; cater to their esteem needs

and need for relatedness and belongingness.

Customer Profile at Caf Coffee Day

The caf is a meeting place for 15-29 year olds, both male and female

who are served.

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18% of the customers visit the cafes daily while another 44% visit weekly.

Each caf, depending upon its size attracts between 500 and 800

customers daily, mainly between 4pm and 7pm. Customers describe Caf

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.

Customer Relationship Programs at CCD

CCD has also launched a Caf citizen loyalty program. A smart

card is provided to the customer, which stores all-importantcustomer information such as his profile, his likes and dislikes, his

previous visit to any of the CCD outlet and so on. When this card is

swiped on any of these NURIT 8010 devices anywhere in the world,

all the vital information is displayed on the screen to enable the

front-end caf staff to serve him to the best of his satisfaction. For

every purchase the customer accumulates points on the card and

he may use these points and redeem the same on his subsequent

purchases. Also customer may register their complaints/queries at

the outlets which is communicated instantly to the Customer Carestaff who would get going to provide answers to customers queries

as soon as possible or to communicate to the concerned customer

complaints and suggestions.

Customer Gifts: Caf Coffee Day Gift Certificates come in

denomination of Rs 100 and Rs 101.

You can purchase the gift certificates from any of our outlets

Bangalore, Hyderabad, Chennai, Mumbai, Pune, Nagpur, Kolkata,

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Age Group Percentage

15-29 24.8

20-24 37.9

25-29 23.4

30-34 3.3

35-44 5.3

above 45 5.3


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Ranchi, Guwahati, Delhi, Chandigarh, Jaipur and Kanpur. The Gift

Certificates are sold on the face value as they are as good as cash.

When a customer purchases a Gift Certificate, he/she is requested

to check that there is a SOLD stamp on the Certificate, without

which the Gift Certificate stands invalid.The user is requested to handover the Certificates to the caf staff

when they place the order. The gift certificates can be redeemed

against food, beverage, merchandise, hukkas.

Other gifting ideas

Gift your employees and clients an affordable but memorable world

class caf experience. Best suited for all kinds of corporate gifting:

Rewarding or gifting your employees, distributors and

dealers.

Gifting your valuable clients.

Festival offers.

Allowances to employees.

Personal occasions like Birthday, Marriages, Anniversary, etc.

Store Formats

There are certain retail factors which drive value for the customers. Store

format and atmospherics are very important in terms of physical evidence

and driving experience right combination of:

Format

Retail environment factors.

Customers often look beyond the functional benefits of a physical store to

the overall experience. Customers perception of value and experience isoften functioning of; look & feel.

Ambience- Music, Colour, Scent, Lighting.

CCD as intelligently used store atmospherics to weave customer

experience and is important tool to competitive advantage.

CCD has come up with innovative caf formats which appeal to its

customers and are a delight to be. The youth has identified these caf

outlets as a pleasure hangout place. The other reason behind coffee is the

ambience of the outlets.

Caf Formats

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Cafe Coffee Day has been experimenting with caf formats for quite some

time back by the motivation of providing customers with exciting choices

as well as constantly redefining the caf experience, CCD has ventured

into the following formats:-

Music Cafs provide customers with the choice of playing their favorite

music tracks on the digital Audio Jukeboxes installed at the caf! There

are around 85 cafes with such jukeboxes. 32 cafes also provide customer

with the visual treat of watching their favorite music videos by means of

video Jukeboxes.

Book Cafs offer the perfect solution to people who think that the coffee

experience is incomplete without browsing through the bestsellers or

reading a classic. CCDs book corners accentuate the age-old combination

of coffee and books. This exciting concept has been successfully tested

at 15 cafes in 12 cities across India and the number is set to grow

exponentially. CCD has tied up with English Book Depot, one of Indias

leading book distributors for placement and rotation of reading material

appealing to Caf Coffee Days discerning customers.

Highway Cafs 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 thatweariness form the road!

Lounge Cafs at Hauz Khas, Delhi and Southern Avenue, Kolkata and

Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with

the lively ambience and comfort of a caf. 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 up as fashion icons.

Garden Cafs at M.G Rd, Bangalore and GK-II, New Delhi combine the joy

of rejuvenating amidst verdant landscapes and pots of coffee.

Cyber Cafs at Brigade Rd, Bangalore, Bangalore Airprt and Delhi airport

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 Caf: Caf Coffee Day will soon set up a sports caf in Pune.Apart from selling merchandise associated with sports, the 2,500-sq ft

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Caf will have a sporty look and feel. The Pune store is an experiment

and we will later expand further based on consumer response, said Mr.

Naresh Malhotra, CEO, Caf Coffee Day.

He added that the company was talking to sports brands for possible co-branding tie-ups. The sports caf concept is similar Caf Coffee Days

concept stores around books and music and its garden cafes. The

company has tie-ups with bookstores Crossword, Odyssey and Book Caf

and Music World for its concept stores. The concept stores form about 20

per cent of Caf Coffee Days retail network of 430 Cafes. The company

also has 500 express outlets. By September we will have 500 Cafes and

700 express outlets. We are right now opening about 20-25 cafes a

month. After September, we will open on e caf per day. said Mr.

Malhotra.

Corporate Social Responsibility

CSR is an important event that connects the organization with thesociety. The customers associated with the organization subconsciously

view it as an element of social pride. It generates social awareness and

acceptance for the organization. The brand revolves around as a story in

the society, and definitely adds to the brand value of the organization. It

can be undertaken as a strategic brand and relation building exercise. It

envisages the organization as, a social entity. This psychology generates

an essence of favorability and likeability for the organization.

Corporate Social Responsibility at CCD

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Despite achieving utopic growth, the company has counted it of utmost

priority to contribute success back to our society. Of our many corporate

social responsibilities our main endeavor has been to create exciting and

lucrative 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. It is out pride

today that as many as 30 such special individuals are employed with us as

Silent Brew Masters. Some of them have been with us for over a year and

contribute with their immense hard work & commitment as an active

team member every day. Their sense of pride in being the bread winner is

a source of motivation for all other team members every day.

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 Caf Coffee Day. The college is

strategically located in midst of places that have no other employment

opportunity except for farming or other traditional avenues that in turn

dont create any difference in their standard of living. The college in

retrospect provides the young individuals to break the chains of povertyan embark on fruitful career.

The Branded Customer Experience

This is a powerful driver of customer loyalty. Organizations are setting out

to create a new customer experience for target customers and then

branding it accordingly. In the U.S automotive industry, General Motors

created a new brand and branded experience with Saturn. Another

approach to this is that your start with the customer experience and then

develops the brand to develop it.

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An extreme form of branding the experience occurs when the experience

is so unique that it needs no obvious visual identity at all. The real

question lies in the ability to sustain the quality of that experience so that

it continues to thrive on word of mouth. There are certain imperatives to

this concept of branding the experience.

Consistent: in terms of delivering that experience over time and

location.

Intentional: in terms of delivering the customer experience to

support the brand

Differentiated: from competing brands

Valuable: in terms of offering a customer proposition which meets

target customer needs.

Creating a Branded Customer Experience requires a new understanding of

the notion of what a brand really means of stands for the product in the

market, what a brand involves, and what it communicates to the

customers. The best way to analyze Branded customer experience is to

set it at the opposite end of a random experience, and the contrast of

practices emerge. Companies invest in service training standard, and

processes to intentionally shape customer experience the best part of this

design is its predictability and consistency with the brand that makes it

so satisfying, infact a pleasure. Unpredictability of service standards,

processes makes it an unsatisfying affair for the customer. The valuabledifference that branded customer experience creates is in itself a value

addition to the core product of service being provide. Creating an

experience really drives loyalty, requires thought, effort, and resources. It

requires new forms of design and intricate internal marketing practices

between various business functions of company, harnessing the power of

your people to turn them into brand ambassadors the company. It

requires seamless integration of high-touch people product and processes.

Branded Customer Experience Management

Model

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People

What must be

distinctive about

our people?


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Designing the Customer Experience

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Product/Service

offerings

What must be

unique about our

product &Services?

Processes

How can theprocess best

deliver the

products and

services in a

valuable way?

Customer

Experience

What

experience must

be provided so

as to meet the

expectations ofthese

customers?

Customer

Behavior

How must

our

customersbehave to

help achieve

goals of the

company?

Customer

Growth

Goals

Who are our

mostprofitable

customers?

Draft Experience Blue Print


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Map the customer experience:

Touch point mapping

What are most customer seeing, hearing, feeling, doing ?

Customer Focus Groups:

Expectations

Differentiations

Priorities

Employee Focus Groups:

Validate Draft experience

Indentify organization enablers and inhibitors

Executive Approval:

Move to implementation planning

Experience Engineering

Customer experience must be managed as a business strategy:

Managing the customer experience is still often thought of as a marketing

and service issue. Experience engineering should be taken up at strategiclevel, strategizing the experience to align it with the brand idea and the

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Map the

Customer

Experience

Surface

Implementatio

n issue

Identitycustomerexpectationsand priorities

Create Final

BCE Print


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marketing strategy of the company will create a favorable impact on the

market of the company. Integration of this experience with all the

business processes and technology is essential. This integration has to be

done with a holistic view of business including market and customers.

Measuring this customer experience after implementation is anothercomponent of this holistic approach, it is essential as it helps fine-tune

and manage the experience.

You are already in the experience business.

Experience is every firms value proposition because no company can

avoid delivering a total experience. A customer cannot have one.

However, most organizations do avoid managing them in a systematic

way, In part because they dont realize the competitive potential, and also

because managing experience well is a complex undertaking which

requires strategic commitment, new competencies, and managing

disciplines.

The composition of experiences

A managed total experience takes into account customers rational and

emotional expectations- an area most business overlook. Yet research

confirms emotional connections are amongst the biggest drivers of repeat

business. As, Harward Business School Prof. Gerald Zaltman says:Consumer preferences and motivation are far less influenced by the

functional attributes of the products and services but emotional

components derived by the total emotional experience.

Customers constantly filter a barrage of clues and organize them into a

set of impressions-some of them rational, some emotional. Every

customer touch point in addition to the product and brand emits clues.

The composite of all these clues creates an experience.

It is possible to positively mange the total experience by orchestrating

these myriad clues. Conversely when the experience is unmanaged it is

not uncommon for the negative unintended ones to cancel out the impact

of even the highest impact, positive ones.

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Measuring the Branded Customer

Experience

Measuring the Branded Customer experience endeavour is of utmostimportance. It acts as a feedback tool and helps indentifying the gaps and

areas that need modification or improvement. It helps In fine tuning the

strategic experience design.

Model for measuring the Branded Customer

Experience

Leading indicators

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People

Employee

Satisfaction

Performance

Indices

Product/

Services

ProductDifferentiation

PerformanceIndices

Process

Process efficiency

Performance

Indices

Customer

Experience

CustomerSatisfaction

CustomerAdvocacy

Customer

Behavior

Sales

Share of Wallet

Repeat purchase

Referral

Customer

Growth Goals

Revenue growth

Market share

Profitability

Shareholdervalue

Lagging

Indicators


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One needs to focus more on lead indicators rather than financial results

alone. These factors which can control the upstream and are responsiblefor financial result are also known as the lagging indicators. The lead

endeavors invariably drive the lagging indicators or the result event.

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Customer Categorization

Introduction

The customer experience enhancing efforts needs to be furtherstreamlined and focused according to the customer status and profile, so

as to best drive the branded customer experience and CRM efforts.

Customers categorization is to be done in capacity of segmenting and

best targeting the respective segments with the customized plan for each.

Aim

To direct the CRM and Customer experience fashioning efforts according

to customer segment and profile.

Objective

To prepare customer categorization scheme.

Methodology

The customer segmentation is to be done based on TCV and Strategic

partnership tenure.

4 categories of customer were generated as a result this endeavour.

These categories will facilitate the respective positioning of the CRM and

other marketing efforts.

Result

A customer categorization catalogue was created and efficiently utilized in

capacity of planning and directing the CRM and other Customer

experience efforts towards the facility customer visit at Caf Coffee Day,

which is to be enacted in the coming months.

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Experiential Summary

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The Dissertation was really a colossal learning experience in the essence

of corporate exposure at Caf Coffee Day and the diligent endeavours

carried out with respect to the real-time study and model formulation. The

corporate work culture at CCD was extremely amicable, professional intoexcellence and high sense of achievement. I had a pertinent opportunity

at my disposal to hone my skills and test my abilities to the realistic

business state of affairs; and nevertheless to advocate, I made the best

of it. Facilitated by my Project guide, Mr. Rajiv Taneja, ISB&M into

organizational psychology and working insight, I had an opportunity to

discover the handy facets of interpersonal dexterity. The project execution

required multi-skilling as well as domain expertise, studying and working

with corporate teams lead me into the practical aspects of group dynamic

and motivational realism which operates very subtly in organizations.

Multi-skilling is required for job accomplishments but domain

expertise is of paramount importance, which will ultimately help me

realize my carrier in right earnest.

A defined organizational goal and role clarity produces higher

employee productivity.

Collectivistic culture attracts people who work for both organization

as well as people, this aspect should be very keenly utilized to finetune the work dynamics at organization.

At the end of the day, this dissertation was a rewarding experience, a

mutual value addition affair.

Refining & validating theoretical knowledge with the essence of practical

awareness is the way to excellence.

-Aastha Agarwal

Take it easy as well as a challenge

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References

Services Marketing By: K. Douglas Hoffman & John E.G Bateson

Business To Business Market Research-By: Ruth Mc Neil

Market Research By: Aaker, Kumar & Day

Managing the Customer experience-By: Shaun Smith & Joe Wheeler

IDC India

MC Kinsey

Forrester

Dataquest

CIO

AT Kearney

Google

Booz Allen Hamilton

Factiva.com

FOIEO-Federation for Indian Export Organization

Nielsen NetRating

Frost & Sullivan

CISCOEconomic and Social Commission for Western Asia (ESCWA)

aastha project

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