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A COMPARATIVE STUDY OFCAF COFFEE DAY AND OTHERCAF IN PONDICHERRY
Under Guidance of: Submitted by:
Dr. BANUMATHI PRAVEEN.K
Department of IB Reg.No:1095637
School of Management Department of IB
Pondicherry University Pondicherry University
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CONTENTS PAGE NO:
CHAPTER I
INTRODUCTION 3
CHAPTER II
REVIEW OF LITERATURE 16
CHAPTER III
RESEARCH METHODOLOGY 18
CHAPTER IV
DATA ANALYSIS & INTERPREATION 22
CHAPTER V
FINDINGS, SUGGESTIONS, CONCLUSION & EXECUTIVESUMMARY
61
BIBLIOGRAPHY 63
ANNEXURE 70
QUESTIONNAIREI
FILLED QUESTIONNAIRE OF CAFE COFFEE DAY II
FILLED QUESTIONNAIRE OF LE CAFE III
FILLED QUESTIONNAIRE OF COFFEE DOT COM IV
FILLED QUESTIONNAIRE OF MASS CAFE V
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CHAPTER I
INTRODUCTION
Marketing is defined by the American Marketing Association as the activity, set of processes for
creating, communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large. The term developed from the original meaning which
referred literally to going to market, as in shopping, or going to a market to buy or sell goods or
services. Marketing practice tends to be seen as a creative industry, which includes advertising,
distribution and selling. It is also concerned with anticipating the customers future needs and
wants, which are often discovered through market research.
Marketing is influenced by many of the social sciences, particularly psychology, sociology, and
economics. The marketing literature is also infamous for re-inventing itself and its vocabulary
according to the times and the culture.
Four Ps in Marketing:
Marketing Mix contain four elements: product, price, place and promotion. These four elements
are often referred to as the marketing mix, which a marketer can use to craft a marketing plan.
y Product: The product aspects of marketing deal with the specifications of the actualgoods or services, and how it relates to the end-users needs and wants. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support.
y Pricing: This refers to the process of setting a price for a product, including discounts.The price need not be monetary; it can simply be what is exchanged for the product or
services, e.g. time, energy, or attention. Methods of setting prices optimally are in the
domain of pricing science.
y Placement(or distribution): refers to how the product gets to the customer; for example,point-of-sale placement or retailing. This third P has also sometimes been called Place,
referring to the channel by which a product or service is sold (e.g. online vs. Retail),
which geographic region or industry, to which segment (young adults, families, business
people), etc. Also referring to how the environment in which the product is sold in canaffect sales.
y Promotion: This includes advertising, sales promotion, publicity, and personal selling.Branding refers to the various methods of promoting the product, brand, or company.
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A formal approach to this customer-focused marketing is known as SIVA (Solution, Information,
Value, and Access). This system is basically the four Ps renamed and reworded to provide a
customer focus.
The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps
supply side model (product, price, place, promotion) of marketing management.
Product Solution
Promotion Information
Price Value
Placement Access
The four elements of the SIVA model are:
1. Solution: How appropriate is the solution to the customers problem/need?2. Information: Does the customer know about the solution? If so, how and from whom do
they know enough to let them make a buying decision?
3. Value: does the customer know the value of the transaction, what it will cost, what are thebenefits, what might they have to sacrifice, what will be their reward?
4. Access: Where can the customer find the solution? How easily/locally/remotely can theybuy it and take delivery?
This model was proposed by Chekitan Dev and Don Schultz in the Marketing Management
Journal of the American Marketing Association, and presented by them in Market Leader, the
journal of the Marketing Society in the UK.
Increasing need for Marketing Research
1) Growth and complexity of markets: - Markets are no more local in character. They arenow national and even global in character. The marketing activity is becoming
increasingly complex and broader in scope as more firms operate in domestic and global
markets. Manufactures find it difficult to establish close contact with all markets and
consumers directly. Similarly, they have no control on the marketing system once the
goods are sold out to middlemen. This situation creates new problem before the
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manufacturers which can be faced effectively through MR as it acts as a feed-back
mechanism to ascertain first hand information, reaction, etc. Of consumers and
middleman. Marketing activities can be adjusted accordingly.
2) Wide gap between producers and consumers: - marketing research is needed as there is awide gap between producers and consumers in the present marketing system. Due tomass scale production and distribution, direct contact between producers and consumers.
Producers do not get dependable information as regards needs, expectation and reactions
of consumers, they are unable to adjust their products, packaging, prices, etc. As per the
needs of consumers. The problem created due to information gap can be solved only
through MR as it possible to establish contact with consumers and collect first hand
information about their needs, expectation, likes, dislikes, preferences and special
features of their behavior. Thus, MR is needed for removing the wide communication gap
between producers and consumers.
3) Changes in the composition of population and pattern of consumption: - In India, manychanges are taking place in the composition of population. There is a shift of population
from rural to urban areas. There have been considerable changes in the consumption and
expenditure patterns of consumers in India. The incomes of the people, in general, are
rising. This brings corresponding increase in their purchasing capacity and buying needs
and habits. The demand for consumer durables is fast increasing. The market are now
flooded with consumer durables like TV sets and so on. Manufacturers are expected to
know such qualitative and quantitative changes in the consumer preferences and their
consumption pattern. For achieving this objective, MR activities are necessary and useful.
In brief, MR is needed for the study of changes in the pattern of consumption and
corresponding adjustment in the marketing planning, policies strategies.
METHODOLOGY
Field Investigation / Survey Method
Survey means a planned attempt to collect required information from representative
sample of the relevant population. Field investigation refers to collection of first hand
information by visiting the markets or meeting the consumers and dealers who are directly
related to marketing activities. Data collected for the first time through field survey is called
primary data. Here, data collected through suitable questionnaire and interview a limited number
of people selected from large group. Customer, creditor and supplier are major source of primarydata.
The primary data collected are superior to secondary data. Primary data are also
necessary when the secondary data are incomplete. Primary data needed to be collected from
different sources such as survey, observation and experimentation.
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The primary data are reliable. However, problem in primary data is its cost, both in term
of money and time required for collection.
Primary data are of two types:-
a) Census: - It refers to the collection of data from the entire population. In India population
census is taken after every 10 years.
b) Sample: - sampling is an internal part of data collection through surveys. Sampling is
used to collect primary data when sources of data are too many to be exhaustively handled. A
sample is only representative portion of the population.
Methods of field investigation/market survey
a) Mail surveys.
b) Telephone surveys.
c) Personal interview.
d) Consumer panels.
COMPARATIVE STUDY:
The comparative method is often used in the early stages of the development of a branch of
science. It can help the researcher to ascend from the initial level of exploratory case studies to a
more advanced level of general theoretical models, invariance, such as causality or evolution.
The design of comparative research is simple. Your objects are specimens or cases which are
similar in some respects (otherwise, it would not be meaningful to compare them) but they differ
in some respects. These differences become the focus of examination. The goal is to find out
why the cases are different: to reveal the general underlying structure which generates or allows
such a variation.
Comparison is one of the most efficient methods for explicating or utilizing tacit knowledge or
tacit attitudes. This can be done, for example, by showing in parallel two slides of two slightly
different objects or situations and by asking people to explain verbally their differences.
The method is also versatile: you can use it in detail work as a complement to other methods, or
the entire structure of a research project can consist of the comparison of just a few cases.
In comparative study, you are examining two (or more) cases, specimens or events, often in the
form of a table such as can be seen on the right where a column is reserved for each case, here
called Case 1 and Case 2. On the basis of the target of your study you have to decide which
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are the interesting aspects, properties or attributes that you will have to note and record for each
of the cases. In the table on the right, these aspects are called A, B and C. During the process of
analysis, you then can add new aspects or drop out fruitless ones. Those aspects that are similar
in both the cases need not be recorded, because here you are not making two case studies but
only a comparison of the cases.
The final goal of research is usually to reveal the systematic structure, invariance, that is true not
only for the cases that were studied, but for the entire group (population) where the cases came
from. In other words, the goal is to generalize the findings. Of course, it would be foolhardy to
assert anything about a larger group, if your study consisted of just two cases. The plausibility of
your generalization will increase, if you have instead of Case 1, several cases from the same
group, let us call it Group 1, and similarly several cases from Group 2. If all or the majority
of these pairs show the same invariance, its credibility will quickly rise. There are statistical
methods to calculate the credibility, or statistical significance of the findings. The question
whether they found invariance then is true even outside the population, is something that the
researcher normally leaves to be speculated by the readers of his report.
In the case that you wish to compare more than two groups, or the number of cases is large, the
study begins to approach classification.
INDUSTRY PROFILE:
There are about 8 million restaurants in the world and some 300,000 restaurant
companies. The restaurant industry divides itself into full-service and fast-food restaurants. Full-
service restaurants include family restaurants (such as Denny's), dinner houses (Darden
Restaurants' Red Lobster), and grill/buffet type eateries (Metromedia's Ponderosa). The fast-foodsector includes sandwich shops, which means hamburgers and Mexican food, as well as pizza
and chicken joints. Companies in this sector include giants such as Kahala (Great Steak &
Potato, Frullati Cafe), Texas Pacific Group (Burger King), YUM! Brands (Taco Bell, KFC, Pizza
Hut), and of course, McDonald's. In a weak economy, the former category's stock suffers as
people with less disposable income settle for cheaper fare.
Overall restaurant sales have been rising just over 5% annually. However, the supply of
workers age 16 to 24, the primary pool for restaurant employees, has been declining. To solve
the problem, companies are hiring more retirees and immigrants, and are increasingly making
use of automation. A slowing economy should help offset a shrinking labor force by keepingwages (often minimum) stable, thus posing less threat to profits.
The restaurant industry is a classic mature market. Companies face stiff competition and
low profit margins. Given the latter, expect companies to continue growing through acquisition
rather than through building new units, which cost upwards of $1 million even for a fast-food
unit. Making acquisitions gives companies a larger revenue base over which to spread costs, and
it also gives them more leverage with suppliers to keep costs down. Demand should stay steady.
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With the rise of two-working adult families since the 1980s, Americans have less time and
energy to prepare their own meals and have been eating out more frequently. Revenues of Hotel
and Restaurant (H&R) industry in India during the financial year 2006-07 was INR604.32 billion
, a growth of 21.27% over the previous year, primarily driven by foreign tourist arrivals ,which
increased by 14.17%. Currently there are some 1,980 hotels approved and classified by the
Ministry of Tourism, Government of India, with a total capacity of about 110,000 hotel rooms.
With tourism industry showing excellent performance, in terms of foreign tourists arrival and
demand outpacing supply, the hospitality industry, is poised to grow at a faster rate and reach
INR826.76 billion by 2010. It is estimated that over the next two years 70,000-80,000 rooms will
be added across different categories throughout the country.
In the Indian scenario, the report covers the current trends in the Hotel industry (increase in
foreign tourist arrivals, MNCs foraying into India, demand supply mismatch getting closer, rise
in Occupancy rates and RevPAR and strong recovery of the Indian economy), its structure
(composition of hotels), key consumer segments (business traveler, leisure traveler, & airline
cabin crew) and value chain. As a part of the de-risking model the companies in the Indian hotel
industry are also moving up the value chain to management contracts and co-branding.
The report on Indian Hotel Industry provides an in-depth view of the sector in general and
important aspects of the sector. The report starts with the global hotel industry to give a
perspective of the Indian hotel industry in the global context. The report covers the hotels
industry structure, major players, regulations, growth drivers, issues and challenges, critical
success factors and foreign direct investment trends. An analysis of the industry performance
was made on critical business parameters like Occupancy rates, Revenue Per Available Room
(RevPAR) and Average Room Rates (ARR) and compared with global trends.. The report also
analyses the performance of the industry across major markets, and profiles the major players in
the industry. The report will be useful for H&R players, Real Estate companies, commercial and
investment banks, business analysts, consultants, investors and students.
Growth of Caf Industry in India
Hot beverages have always been a part of the tradition of India, especially South India. Coffee
took the first seat in South India when the traditional Brahmin classes brought down the
beverage from the ruling British around the 1930s. During the early years the drink was confined
only to traditional rich Brahmin families who served filter coffee in a davra- tumbler. Coffee is
no more confined to the rich Brahmin class now, though the tradition of serving filter coffee inthe davra- tumbler continues to this day. In order to spread the drink, coffee houses emerged at
various places in the country, which also served as the opposite places for lawyers and the
educated class to hold discussions ranging from politics to cinema. It is also believed that many
scripts and ideas for films evolved here. One of the oldest coffee houses in South India is the
Raayars mess, Chennai, which serves first class filter coffee even today. The mess was
established in the 1940s and continues the tradition of coffee but supplements it with tiffin also.
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The vintage location of the mess attracts huge crowds even today early in the mornings, Coffee
however was not the only item on the menu. These places also served food and other drinks to
their customers. The drink also became famous and as a result even five star hotels began
cashing in on it.
Several hotels all over the country started opening coffee- shops that catered to high- endcustomers. This showed the popularization of coffee cafs, to all sections of society. The drink
has now become more of a concept than merely a drink itself. The last decade witnesses the
growth of numerous coffee pubs in the country. A number of coffee caf owners tried to
westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista,
and Caf Coffee Day have opened up around the country. The concept of a caf today is not
merely about selling coffee, but about developing a national brand. Retail cafs now form a
multi- core industry in the country, and have huge potential for growth locally, and
internationally.
COMPANY PROFILE:
Caf Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 750 crores ISO 9002
certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest
in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of Indias
leading coffee exporters with clients across USA, Europe & Japan.
With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees
and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the
entire value chain of coffee consumption in India. Its different divisions include: Coffee Day
Fresh n Ground (which owns 400 Coffee bean and powder retail outlets), Coffee Day Xpress
(which owns 895 Coffee Day Kiosk), Coffee Day Take away (which owns 12000 Vending
Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.
Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at
Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was restricted to
the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure
(as opposed to instant coffee) coffee caf culture in neighboring international markets grew, the
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need for a relaxed and fun hangout for the emerging urban youth in the country was clearly
seen. Recognizing the potential that lay ahead on the horizon, Caf Coffee Day embarked on a
dynamic journey to become a large organized retail caf chain with a distinct brand identity of its
own. From a handful of cafs in six cities in the first 5 years, CCD has become Indias largest
and premier retail chain of cafes with 937 cafes in 103 cities around the country.
Enthused by the success of offering a world-class coffee experience, CCD has opened a Caf in
Vienna, Austria and is planning to open other Cafes in the Middle East, Eastern Europe, Eurasia,
Egypt and South East Asia in the coming months.
LOGO
The logo colors signify:
y Red Leadership, passiony White Swirl Purity of purpose, invigorating properties of coffeey Green Stroke 125 years of coffee growing heritage of this vertically integrated group
The font used for Caf is called SLURRY. The font looks as though the letters have congealed(coagulated) out of a liquid.
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BUSINESS ASSOCIATION:
CCD has emerged as an interactive alternative media for brands to communicate with the young
at heart.
Other media, such as electronic, print and outdoor, offer brand communication through visualand audio modes to a large section of the populace, both relevant and irrelevant. Caf CoffeeDay offers a much more interactive, targeted communication, sometimes adding even a tastedimension to a brand idea!
Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the elementof interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters,Drop boxes, Contest Forms, Stirrers, Standees etc.
Over the years, CCD has successfully promoted a number of brands/products/events throughvarious innovative tactics and promo ideas. Cashing in on its mass captive audience, we at CCDhave entered into tie-ups and promotions which are well knit with our brand promise and whichcan be creatively used to woo the Indian Youth.
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Customer Profile
The caf is a meeting place for 15-29 year olds, both male and female who are served the best
coffee by friendly and informed staff, in an uplifting and invigorating ambience.
Research (click to see details) shows that teen-agers from 25% of our customers while 38% of
the customers are between 20 and 24years and another 23% belong to the age group of 25-29
years. Students and young professional comprise around 72% of our customers.
18% of the customers visit the cafes daily while another 44% visit weekly. Each caf, depending
upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm.
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.
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Friends & Family Gift Certificates
-Just cant seem to find the right gift for you friends and loved ones?
-Waited for the last moment to buy a gift?
-Unable to choose a gift and want your loved ones to pick what they want on their own?
- Looking for something new to gift to your loved ones?
Sample Gift Certificates
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Corporate Gift Certificates
Gift your employees and clients an affordable but memorable world class caf experience
Gift them Caf Coffee Day Gift Certificates.
-Why you should buy a Caf Coffee Day Gift Certificate:
CCD Gift Certificates are available in 204 cafs and most of them in metros or top cities!
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CHAPTER II
REVIEW OF LITERATURE
BARISTA VS CAF COFFEE DAY A COMPARATIVE STUDY
The objective of the thesis is To compare and study Barista & Caf Coffee Day, identify areas
of excellence and areas needing improvement; and provide suggestions for such improvement.
The aim of this Thesis is to successfully compare two prominent service sector companies on a
common platform, analyze their working and performance, and highlight what they are doing
well, while providing suggestions and recommendations for improvement.
Barista and Caf Coffee Day were chosen because of their identical pattern of functioning and
growth. They are the only two major players in the national coffee caf industry, and their
customers consider both as interchangeable brands. This is why it is important to study how
these brands differentiate themselves from each other, and attempt to improve brand loyalty
amongst their customers. For the purpose of this study, I prepared 2 research tools, both
questionnaire, to find out the relevant primary data pertaining to the functioning and working of
both Barista and Caf Coffee Day. The data was collected based on information provided by:
1. The management of the organization.
2. Customers visiting Barista and Caf Coffee Day outlets.
Besides the primary data collected with the help of the questionnaire, I have also collected the
relevant secondary data from various sources like magazines, books and Internet and
newspapers. Based on the relevant primary and secondary data, a4 comparative analysis has beendone so as to find out the areas of excellence and areas of improvement of both organizations.
The areas of excellence and improvement have been identified based on factual information, in
light of which recommendations and suggestions have been provided for the overall
improvement of the organizations in the future.
This Thesis was conducted in 2005 in Kolkata, India; so the information is relative to this city.
Section One: The Coffee Caf Industry.
Section one of the Thesis is a peek at the coffee caf industry. It takes a look at how the industryhas evolved through time, from its early beginnings in Europe, to its current form of a highly
organized sector. It also details the structure of the industry, with its various components, in its
current form. It finally deals with how this industry has grown in India, and what its current
status is.
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Section Two: Case study on Barista.
Section Two is a case study on the first organization being compared in this study, Barista. The
case study looks at the overall working and performance of Barista, and the various aspects and
functioning of its Marketing and Human Resource.
Section Three: Case study on Caf Coffee Day. Section Three is a case study on Caf Coffee
Day, the other organizations being compared in this study. This section deals with the overall
operations of Caf Coffee Day, and like the previous section, the functioning and aspects of its
Marketing and Human Resource.
Section Four: Market Survey. Section Four is the main comparative rating of both Barista and
Caf Coffee Day, based on a survey of customers visiting the outlets. The survey analyses how
both are performing in the areas of Taste and Quality of Products, Value for Money, Delivery,
People, Dcor & Architecture, etc.
Section Five: Conclusion. The last section of the Thesis identifies areas where both organizations
are performing excellently, and areas where they need to improve. It also provides
recommendations based on the finding of the market survey, and the case studies of both firms.
This section will provide an overall perspective on the comparative study of both the firms.
Conclusion
This report concludes proving that both Cafe Coffee Day and Barista cafe have their strong
points like Barista cafe has a strong brand image and cafe coffee day has a strong customer
satisfaction.
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CHAPTER III
RESEARCH METHODOLOGY
Data collection
Data is collected through random sampling method. The numbers of samples were 160
and the numbers of questions are 10.
Sampling
Since it is generally impossible to study an entire population (every individual in a country, all
college students, every geographic area, etc.), researchers typically rely onsamplingto acquire a
section of the population to perform an experiment or observational study. It is important that the
group selected be representative of the population, and not biased in a systematic manner. For
example, a group comprised of the wealthiest individuals in a given area probably would not
accurately reflect the opinions of the entire population in that area. For this reason,
randomization is typically employed to achieve an unbiased sample. The most common sampling
designs aresimple random sampling,stratified random sampling, and multistage random
sampling.
Simple Random Sampling
Simple random samplingis the basic sampling technique where we select a group of
subjects (a sample) for study from a larger group (a population). Each individual is chosen
entirely by chance and each member of the population has an equal chance of being included in
the sample. Every possible sample of a given size has the same chance of selection.
Use
Use in simple experiments that require a single sample to be taken from a given population or a
representative sample frame.
The people in the sample frame must all be accessible and available.
Use when the target group is sufficiently large. Do notuse when the target is a relatively small
subgroup that might be missed by this method.
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Method
Create the sample by selecting randomly from the sample frame or population.
This can be done using a paper list of random numbers, although these days a computer
is often used.
Likert scale
An important distinction must be made between aLikert Scale and aLikert item. The
Likert Scale is the sum of responses on several Likert items. Because Likert items are often
accompanied by a visual analog scale (e.g., a horizontal line, on which a subject indicates his or
her response by circling or checking tick-marks), the items are sometimes called scales
themselves. This is the source of much confusion; it is better, therefore, to reserve the word
'Likert scale' to apply to the summated scale, and 'Likert item' to refer to an individual item.
A Likert item is simply a statement which the respondent is asked to evaluate according to any
kind of subjective or objective criteria; generally the level of agreement or disagreement is
measured. Often five ordered response levels are used, although many psychometricians
advocate using seven or nine levels; a recent empirical study found that data from 5-level, 7-level
and 10-level items showed very similar characteristics in terms of mean, variance, skewness and
kurtosis after a simple transformation was applied.
The format of a typical five-level Likert item is:
1. Strongly disagree2. Disagree3. Neither agree nor disagree4. Agree5. Strongly agree
6. Likert scaling is a bipolar sampling method, measuring either positive or negative responseto a statement. Sometimes a four-point scale is used; this is a method since the middle
option of "Neither agree nor disagree" is not available.
7. Likert scales may be subject to distortion from several causes. Respondents may avoidusing extreme response categories (central tendency bias); agree with statements aspresented ;or try to portray themselves or their organization in a more favorable light .
Designing a scale with balanced keying (an equal number of positive and negative
statements) can obviate the problem of acquiescence bias, since acquiescence on positively
keyed items will balance acquiescence on negatively keyed items, but central tendency and
social desirability are somewhat more problematic.
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Level of measurement
The five response categories are often believed to represent Interval levels of
measurements. But this can only be the case if the intervals between the scale points correspond
to empirical observations in a metric sense. In fact, there may also appear phenomena which
even question the ordinal scale level. For example, in a set of items A, B, C rated with a Likert
scale circular relations like A>B, B>C and C>A can appear. This violates the axiom of
transitivity for the ordinal scale.
Objectives of the study
Primary objective
To analyze the competitive nature of cafe coffee day over other cafe in Pondicherry. To suggest a potential location for such type of business in future.
Secondary objective
To know about customers opinion about the quality of the product. To find the effectiveness of the promotions in cafe coffee day. To evaluate the value of pricing. To advocate the suitable place for business.
Scope of the study
Helps to understand the retail cafe industry in a better way. Makes one to know thedifficulties in real time implementation of plans in business. Helps Cafe Coffee Day to
know the strength and weakness in its service and thereby set ideas in its function for
better functioning. To develop its employees individuals growth along with the
organization. Helps to understand the real time implementation of promotional strategy
and its effectiveness.
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Limitations of the study
yTime is the major factor duration of two months is very short time, since this is acomparative study and survey to be conducted in different cafes.
ySample size is 160 since the population of cafe coffee day is less than 300.
yFew of the customers give a biased answer since they like that particular cafe.yFewer tools were used since the sample size was not big and we may get only anapproximate answer.
Comparison was limited to three cafes because of the nature of the project as it should
cover all segments of people and their preference as more cafes in Pondicherry attracts only
foreign customers.
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CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
In this chapter every question from the questionnaire is analyzed with different tools and
interpreted in a way to get an accurate result.
1. AGE:Age of customers in total and Cafe coffee day and other cafes
Age range CCD (in %) Others (in %)
40 11 25
Inference
y To all the cafes maximum customers are in the age group less than 30 years.y In Cafe coffee day it is a little high as almost 75% are less than 30 years.
Cafe Coffee day attracts young customers than other cafes.
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2.SEX:
Sex of customers
Gender CCD (in %) Others (in %)
Male 61 63
Female 39 37
Inference
y Both Male and female population in all cafes are almost equally distributed.
3.FIRST TIME VISITOR TO CAF:
Yes
34%
no
66%
First Time Visitor
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Infrence
For Cafe coffee day first time visitors are more since it is new and without much advertisment
and promotional activities it is able to attract new customers.
4.PRODUCT PREFERENCE:
Food Total CCD Others
Hot coffee 60 40 20
Cold coffee 37 26 11
Pastries/food 39 21 18
Cool drinks 24 13 11
Hot
Coffee
38%
Cold
coffee
23%
Pastries/f
ood
24%
Cool
Drinks
15%
Product preference
Frequency of visit CCD (in %) Others (in %)
First time visitor 55 35
Regular visitor 45 65
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Inference
y Cafe coffee day has a its most customers prefer Coffee(hot/cold)y Though pastries are good in Cafe coffee day, it is found that difference in taste more
often make customers think twice before having a cake/sandwich in CCD.
5. PRICING RANGE:Price range Total CCD Others
0-50 30 20 10
51-100 66 41 25
101-150 37 22 15
Above 150 27 17 10
hot coffee cold coffee pastries cooldrinks
CCD
others
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Inference
y It is clear that customers on an average mostly spent between 50 and 100 rs in a visit.y And the spending pattern in CCD and Other cafes does not have much difference in
Pondicherry.
6. SERVICE PERFORMANCE FORM:Service performance Cafe coffee day Others
1-worst 6 7
2-poor 8 10
3-fair 20 30
4-good 30 10
5-excelent 36 3
0-50
19%
51-100
41%
101-150
23%
above
150
17%
Price Range
0-50
20%
51-100
41%
101-
150
22%
above
150
17%
CCD0-50
17%
51-100
41%
101-
150
25%
above
150
17%
others
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Service Performance CCD Tests ofBetween-Subjects Effects
Dependent Variable: Service Performance CCD
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 1459.240 1 1459.240 1.041E3 .000
Error 138.760 99 1.402
Total 1598.000 100
Corrected Total 138.760 99
a. R Squared = .000 (Adjusted R Squared = .000)
Service Performance Others Tests ofBetween-Subjects Effects
Dependent Variable: Others Performance
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 493.067 1 493.067 493.624 .000
Error 58.933 59 .999
Total 552.000 60
Corrected Total 58.933 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y Service performance of cafe coffee day is far better than other cafes.y As the percentage of Good and excellent service is 66% which when compare with
others is 21%.
y This clearly indicates the customers want better service.
worst
6%
Poor
8%
Fair
20%
Good
30%
Exc
ellent
36%
service performence CCD
worst
11%Poor
17%
Fair
50%
Good
17%
Excellent5% Service performance others
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7. DELIVERY TIMING:
Delivery timing Cafe coffee day Others
1-worst 10 11
2-poor 20 29
3-fair 30 10
4-good 25 7
5-excelent 15 3
Delivery timing in CCD Tests ofBetween-Subjects Effects
Dependent Variable: Delivery timing in
CCD
Source
Type III Sum
of Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 992.250 1 992.250 688.145 .000
Error 142.750 99 1.442
Total 1135.000 100
Corrected
Total 142.750 99
a. R Squared = .000 (Adjusted R Squared = .000)
Delivery timing in others Tests ofBetween-Subjects Effects
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Dependent Variable: Delivery Timing in
Others
Source
Type
III Sum
of
Squares df Mean Square F Sig.
Corrected Model .000a 0 . . .
Intercept 336.067 1 336.067 291.873 .000
Error 67.933 59 1.151
Total 404.000 60
Corrected Total 67.933 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y It is clear that delivery timing in Cafe Coffee day is better than other cafes.y 20% of customers have replied for poor delivery timing and the reason is mostly because
of peek timing of the customers visit.
y Over all the delivery timing is good in CCD.
worst
10%
Poor20%
Fair
30%
Good
25%
Excellent
15%
Delivery timing CCD
worst
18%
Poor
48%
Fair
17%
Good
12%
Excellent
5%Delivery timing others
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8. EXPERIENCE:
Experience in CCD Tests ofBetween-Subjects Effects
Dependent Variable: Exprience In CCD
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 1115.560 1 1115.560 797.749 .000
Error 138.440 99 1.398
Total 1254.000 100
Corrected Total 138.440 99
a. R Squared = .000 (Adjusted R Squared = .000)
Experience Cafe coffee day Others
1-worst 10 8
2-poor 8 12
3-fair 40 20
4-good 23 12
5-excelent 20 8
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Experience in others Tests ofBetween-Subjects Effects
Dependent Variable: Exprience in others
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 540.000 1 540.000 362.045 .000
Error 88.000 59 1.492
Total 628.000 60
Corrected Total 88.000 59
a. R Squared = .000 (Adjusted R Squared = .000)
.
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Inference
y Experience in CCD is slightly higher than in other cafes.y Though more customers of other cafes have rated their experience poor and worst
a little higher the feel its ok with them.y Have to increase the overall experience of CCD customers.
worst
10%
Poor
8%
Fair
40%
Good
22%
Excellent
20%
Exprience in CCD
worst
13%
Poor
20%
Fair
34%
Good
20%
Excellent
13%
Experience in Others
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9. Outlet location comfort levelCafe coffee day Others
1-worst 25 5
2-poor 30 10
3-fair 30 15
4-good 15 15
5-excelent 0 15
location comfort CCD Tests ofBetween-Subjects Effects
Dependent Variable: Location
comfort CCD
Source
Type
III Sum
ofSquares df
MeanSquare F Sig.
Corrected
Model.000a 0 . . .
Intercept 552.250 1 552.250 532.095 .000
Error 102.750 99 1.038
Total 655.000 100
Corrected
Total102.750 99
a. R Squared = .000 (Adjusted R Squared =
.000)
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Location comfort others Tests ofBetween-Subjects Effects
Dependent Variable: location comfort Others
Source
Type III Sum of
Squares df
Mean
Square F Sig.
Corrected Model .000a
0 . . .
Intercept 700.417 1 700.417 436.912 .000
Error 94.583 59 1.603
Total 795.000 60
Corrected Total 94.583 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y More customers feel that CCDs location is not that comfortable when compared to otherCafes since, other cafes are in places where people visit most.
y Only the guests of Ginger hotel feel it is comfortable for them.People expect CCD to open new cafes in some other location.
worst
25%
poor
30%
fair
30%
good
1
5%
excellent
0%
Location comfort level CCD
worst
8%
poor
17%
fair
25%
good
25%
excellent
25%
Location comfort level Others
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10.First hangout place in Pondicherry:
Coffee shops 35
Restaurents 35
Pizza bunks 25
Ice cream shops 15
Wine shops/bars 50
Inference
y Only a few customers that to below 25 years of age are the only people whose 1 st habgoutplace was cafes.
y More people prefer Bars and restaurents in the city.But the customers of CCD are lot younger and some customers have said they were expecting
Cafe coffee day long time.
Coffee Shops
22%
Restaurents
22%PizzaBunks
16%
Icecream
shops
9%
Wine Shops
31%
First hang Out
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11.I get what ever i ask FIRSTCafe coffee
day
Others
1-worst 10 10
2-poor 10 18
3-fair 37 20
4-good 12 8
5-excelent 15 4
1st or 2nd preference in CCD Tests of
Between-Subjects Effects
Dependent Variable:1st or 2nd preference
in CCD
Source
Type III
Sum of
Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 876.160 1 876.160 629.279 .000
Error 137.840 99 1.392
Total 1014.000 100
CorrectedTotal
137.840 99
a. R Squared = .000 (Adjusted R Squared
= .000)
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1st or 2nd preference in others Tests ofBetween-Subjects Effects
Dependent Variable:1st or 2nd preference in others
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 470.400 1 470.400 398.759 .000
Error 69.600 59 1.180
Total 540.000 60
Corrected Total 69.600 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y More customers feel they are given the 1st preference that is the first item they order inCCD as CCD has all its main iteams in hand mostly coffees and cakes.
y But other cafes even customers are not given their first preference even in coffees.y Few costomers who have replied in negetive have not got their food order of hot dogs and
wraps.
worst
20%
poor
20%
fair
15%
good
10%
exc
ellent
35%
1st or 2nd Preference@CCD
worst
25%
poor
25%fair
17%
good
8%
excellent
25%
1st or 2nd preference @others
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12.Price comfort level:Cafe coffee
day
Others
1-worst 10 10
2-poor 20 15
3-fair 30 20
4-good 20 8
5-excelent 20 7
Price comfort level at CCDTests ofBetween-SubjectsEffects
Dependent Variable: Price
comfort level CCD
Source
Type III
Sum of
Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 1024.000 1 1024.000 649.846 .000
Error 156.000 99 1.576
Total 1180.000 100
Corrected
Total156.000 99
a. R Squared = .000 (Adjusted R Squared =
.000)
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Price comfort level at others Tests ofBetween-Subjects Effects
Dependent Variable: price comfort level
others
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 464.817 1 464.817 310.991 .000
Error 88.183 59 1.495
Total 553.000 60
Corrected Total 88.183 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y 50% of CCD customers have said they are happy with the price level which is whencompared to other cafe is much better.
y Some customers feel that they r not at all comfortable in food items as they say they getthet same food for a much cheaper price in mass cafe.
y Other wise CCD customers are more comfortable as other two cafe Le cafe and coffeedot com are more expensive.
worst
10%
poor20%
fair
30%
good
20%
excellent
20%
price comfort level @others
worst
17%
poor
25%
fair
33%
good
13%
excellent
12%
price comfort level@ others
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13.Source of information :Source Cafe coffee day Other cafes
Promotional activites 5 8
Friends 40 15
Other outlets 16 9
Self 30 20
Others 9 8
Inference
y Cafe coffee day is known to people by just word of mouth and other CCd outlets in othercafe as in pondicherry there is more floating population.
y Other cafes are known mostly by adds and hordings.y Most first time customers in CCD were unaware of Cafe coffee day for long.
Promoti
onals
5%
Friends
40%
Other
outlets
16%
Self
30%
Others
9%
Source of info Promotionals
13%
Friends
25%
Other
outlets
15%
Self
34%
Others
13%
others
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14.Recreaton Activities:Cafe coffee day Others
1-worst 21 6
2-poor 28 14
3-fair 31 10
4-good 12 16
5-excelent 8 14
Recreation activities at CCD Tests ofBetween-SubjectsEffects
Dependent Variable: Recreation activities at
CCD
Source
Type
III Sum
of
Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 665.640 1 665.640 476.282 .000
Error 138.360 99 1.398
Total 804.000 100
CorrectedTotal
138.360 99
a. R Squared = .000 (Adjusted RSquared = .000)
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Recreation activities at others Tests ofBetween-Subjects Effects
Dependent Variable: Recreation activities at others
Source
Type III Sum of
Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 653.400 1 653.400 368.553 .000
Error 104.600 59 1.773
Total 758.000 60
Corrected Total 104.600 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y Between other Cafes and CCD, customers feel that other cafes have better recreationactivities than Cafe coffee day.
y Because nearly 50% feel that there is very less or no recreation activites in CCDponbdierry.
Though the enjoy their time in Cafe coffee day customers expect more fun in cafes.
worst
21%
poor
28%fair
31%
good
12%
excellent
8%
Recreation activites@CCD
worst
10%
poor
23%
fair
17%
good
27%
excellent
23%
recreation activities@others
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15.Ambience:Cafe coffee
day
Others
1-worst 26 4
2-poor 24 10
3-fair 29 16
4-good 11 18
5-excelent 10 12
Ambience at CCD Tests ofBetween-Subjects Effects
Dependent Variable: Ambience
at CCD
Source
Type
III Sum
of
Squares df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 650.250 1 650.250 405.510 .000
Error 158.750 99 1.604
Total 809.000 100
CorrectedTotal
158.750 99
a. R Squared = .000 (Adjusted R Squared
= .000)
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13.Ambience at others Tests ofBetween-Subjects Effects
Dependent Variable: Ambience at others
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 693.600 1 693.600 496.631 .000
Error 82.400 59 1.397
Total 776.000 60
Corrected Total 82.400 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Inference
y In this parameter other cafes out shows Cafe coffee day.y Since this cafe coffee day is In side Ginger hotel, customers feel the CCD ambience is
missing a little. And other cafes are located in beach and main town and CCd is in outer
part of the town.
worst
26%
poor
24%
fair
29%
good
11%
excellent
10%
Ambience @ CCD
worst6%
poor
17%
fair
27%
good
30%
excellent
20%
Ambience @ others
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16.Purpose of Visit:Purpose
Time pass 22
Hangout 46
Business visit 16
On the go 37
Others 29
Inference
y Most people visit cafes just to relax and to hang out with friends.y 20% of the customers visit cafes on the go.y So it is necessary to see to that the cafe is seen clearly form a distance that is the hprding
or the name board of the cafe should be vissible for the people who pass by.
y Through the suggestions given by customers, it is found that cafe coffee day board is nothat much visible.
TimePass
22%
hangout34%
BusinessVisit
8%
OnTheGo
20%
others
16%
purpose of visit
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17.Frequence of visit per week rate:Cafe coffee
day
Others
1-worst 39 11
2-poor 24 20
3-fair 21 9
4-good 10 8
5-excelent 6 12
Frequency of visit per week atCCD Tests ofBetween-Subjects Effects
Dependent Variable: Frequency
of visit CCD
Source
TypeIII Sum
of
Squares Df
Mean
Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 484.000 1 484.000 319.440 .000
Error 150.000 99 1.515
Total 634.000 100
Corrected
Total150.000 99
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a. R Squared = .000 (Adjusted R Squared
= .000)
Frequency of visit per week at others Tests ofBetween-Subjects Effects
Dependent Variable: Frequency of Visit
others
Source
Type III Sum
of Squares Df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 481.667 1 481.667 240.155 .000
Error 118.333 59 2.006
Total 600.000 60
Corrected Total 118.333 59
a. R Squared = .000 (Adjusted R Squared = .000)
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Infrence
y Most customers are not ferquent visitors every week but with the data available it is thatle cafe and coffee dot com have very regular visitors.
That is because those cafes have more other country customers who have settled hear and tjey
feel comfortable as those cafes are close by their residents.
worst
31%
poor
28%
fair
19%
good11%
excellent
11%
Frequency of visit per week
Series1
0
10
20
30
40
50
worstpoor fair
goodexcellent
Series1
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18.Caf outlets in resorts:Cafe coffee day Others
1-worst 7 9
2-poor 13 9
3-fair 19 11
4-good 24 12
5-excelent 37 19
Cafes at resorts Tests ofBetween-Subjects Effects
Dependent Variable: Cafes at resort
Source
Type III Sum
of Squares df Mean Square F Sig.
Corrected
Model.000a 0 . . .
Intercept 2059.225 1 2059.225 1.126E3 .000
Error 290.775 159 1.829
Total 2350.000 160
Corrected Total 290.775 159
a. R Squared = .000 (Adjusted R Squared = .000)
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Inferencey More people feel that cafe at resorts would be good.
19.Caf at shopping Malls:Cafe coffee day Others
1-worst 15 14
2-poor 17 27
3-fair 22 11
4-good 26 5
5-excelent 20 3
Cafes at malls Tests ofBetween-Subjects Effects
Dependent Variable:Cafes at
malls
Beach
39%
Whitetown
23%HighWays
9%
Suburbs10%
BusinessAreas
19%
CCD
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Source
Type III
Sum of
Squares df
Mean
Square F Sig.
CorrectedModel
.000a 0 . . .
Intercept 1282.556 1 1282.556 716.931 .000
Error 284.444 159 1.789
Total 1567.000 160
Corrected
Total284.444 159
a. R Squared = .000 (Adjusted R Squared =
.000)
Inference
y Customers prefer cafes at shopping more since that is a place where the go often.y Most of CCD customers also prefer cafe in shopping malls.
worst
19%
poor
24%
fair
18%
good
18%
excellent
21%
Caf outlet @ shopping malls
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20.Suggestion for new outlet location:Place
Beach 48
White town 33
Highway 21
Suburbs 24
Business areas 34
Infrencey Cafe coffee day customers prefer a cafe in white town and white town.
Beach
39%
Whitetown
23%
HighWays9%
Suburbs
10%
BusinessAreas
19%
CCD
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21.A LOT CAN HAPPEN OVER A COFFEE:1WORST 3
2-POOR 7
3-FAIR 27
4-GOOD 24
5-EXCELLENT 39
Infrence
It is clear that the caption of cafe coffee day caption has reached the customers to a great extent.
worst3%
poor
7%
fair
27%
goo
24%
excellent
39%
ALot Can Happen Over A coffee
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CHAPTER V
Findings
y The quality of service and delivery timing of cafe coffee day is comparatively better thanother cafes according to the cafes customers.
y Customers find the location of this cafe coffee day a little uncomfortable since it islocated inside Ginger hotel at Pondicherry.
y The average age of a customer is just 25 years.y People expect a new cafe in Pondicherry that is individual in nature.y Customers are comfortable with the price when compared to other cafes but feel that it is
little expensive.
y It is found that the recreation activities in cafe coffee day need to be increased.y Customers feel that the quality of food items can be improved as they see variation in
taste on a regular basic.
Suggestions
y Cafe coffee day can try to reduce its prices on certain food items.y Can go in for some promotional activates like hoardings etc,y Can increase customer delight through a constant taste of food items. i.e. can
change vendor since customers feel that the most loved cake in cafe coffee day
(Chocolate fantasy) is not up to the mark as in other cafe coffee day outlet.
y Should try opening new individual outlets in Pondicherry.y The ideal place to open a cafe in Pondicherry is near beach in white town and
place near to business centers.
y Cafe coffee day can also be profitable if it can be opened in the place betweenPondicherry university and auroville.
y Should go in for more promotional activates like the free coffee coupon in Jan andFeb. quite often.
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Conclusion
It is evident that cafe coffee day is a better cafe than others in Pondicherry in
many aspects and that is the reason why people prefer cafe coffee day. Though there are
certain areas to concentrate, Cafe Coffee Day has the edge over others.
EXECUTIVE SUMMARY:
This summer project work is done in the field of marketing where the customer needs and
satisfaction are measured by using certain methodology. This project helps us to perform an in-
depth study on consumers preference and delight on cafes in and around Pondicherry and why
they prefer a particular cafe and their opinion about the same.
Also the main reason for choosing the topic is to have a brief idea about the emerging market
potential and opportunities in Pondicherry for international brand restaurants. The reason for
selecting Pondicherry as a region of study is because its a developing union territory unlike
other metropolitan, it has a cross culture of rural and urban lifestyle. Also in recent years there is
a huge amount of floatation of people from many parts of the country and also from other
countries to Pondicherry as it is considered as a French Style town. Hence by doing this we can
have a good forecast about the developing market of Pondicherry.
Questionnaire was prepared and samples were collected in Caf Coffee Day and similar other
Caf in Pondicherry. The data collected are analyzed and the findings from the interpretation of
these pave a way for some suggestions.
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Bibliography
Kothari,C.R., Research Methodology ,WISHWA PRAKASHAN Publishing,Printed inIndia,Bangalore, Year 1998.
Kotler,Philip, Marketing Management,Ninth Edition , Prentice Hall, Printed inIndia,Year 1999.
WWW.cafecoffeeday.com www.managementparadise.com
www.citesales.com