Cafe Coffe Day
Cafe Coffe Day
Cafe Coffe Day
Project on
“B ar is ta a nd C af é c of fee d ay
- A c omp ar ati ve st ud y”
SUBMITTED BY
SE MESTE R 5
BACHELORS OF MANAGEMENT STUDIES.
YEAR
2008-2009
BARISTA
&
CAFÉ COFFEE DA Y
- A COMPARATIVE
STUDY
Date:
AC KNOWLEDGEMENT
Signature of signature of
Project co-coordinator. Principal of college
DECL ARATION
ANSARI FARAH
R.A.D.A.V. COLLEGE.
INDEX
Tabl e of Contents
Top ic
Sy nops is
Sectio n 1: Intr od ucti on - The C offee Ca fé Ind ust ry
1.1 Evolution of Coffee Cafés
1.2 The Coffee Café Industry
1.3 Growth of the Café Industry in India
Resea rch Metho dol og y
Sectio n 2: Ca se S tu dy on B ar ista
2.1 Corporate Profile
2.2 Marketing Mix
2.3 Human Resources
Sectio n 3: Ca se S tu dy on C afé Co ffe e Da y
3.1 Corporate Profile
3.2 Marketing Mix
3.3 Human Resources
Sectio n 4: Ma rket Su rve y
4.1 Survey Methodology
4.2 Characteristics of Visit
4.3 Comparative Rating
2
Sectio n 5: Co ncl usio n
5.1 Areas of Excellence
5.2 Areas needing Improvement
5.2 Recommendations & Suggestions
Bibl iog ra ph y
SYNOPS IS
The objective of the thesis is “To compare and study Barista & Café
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 Café Coffee Day were chosen because of their identical
pattern of functioning and growth. They are the only two major players
in the national coffee café 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 Café Coffee Day. The data
was collected based on information provided by:
The beginning:
It all began around 1000 A.D. when Arab traders began to cultivate
coffee beans in large plantations. They began to boil the beans creating a
drink they called ‘qahwa’ which translates to ‘that which prevents sleep’.
The drink became widely popular, and the need for coffee beans grew. The
brief timeline for the growth of coffee, cafés and everything related is given
below:
First known discovery of coffee berries.
Legend of goat herder Kaldi of Ethiopia, who notices goats are
friskier after eating red barriers of a local shrub. Experiments with the
berries himself and begins to feel happier.
The first coffee trees are cultivated on the Arabian Peninsula. Coffee is first
roasted and boiled by Arabs making ‘qahwa’.
850
1100
The world’s first coffee shop opens in Constantinople. 1475
The first establishment in Constantinople soon becomes widely popular, and
two more cafés are opened.
1554
Coffee enters Europe through the port of Venice. The first coffee
house opens in Italy in 1654.
1600s
1652
1672
1683
1688
1695
1700
1721
The first coffee house opens in England. Coffee houses were called
‘penny universities’ (a penny is charged for admission and a cup of coffee)
because a person could visit a café to discuss current affairs and social
issues.
The first Persian coffee house opens. The first coffee house opens in
Vienna. Edward Lloyd’s coffee house opens. It eventually becomes Lloyd’s
of London, the world’s best-known insurance company.
The first sign of the French Revolution had its roots in Parisian cafés where
the people’s movement started gathering steam. The Dutch becomes the first
to transport and cultivate coffee commercially. Coffee is smuggled out of the
Arab port of Mocha and transported to Sri Lanka and India for cultivation.
The first coffee house opens in Berlin. One of Europe’s first coffee houses,
Café Greco opens in Rome. By 1763, Venice has over 2,000 coffee shops.
17 50
The prototype of the first espresso
18 22
Machine is created in France.
18 85
A process of using natural gas and hot air becomes the most popular
method of roasting coffee.
19 05 manufactured in Italy.
The invention of the world’s first drip
Coffeemaker. Melitta Bentz makes a filter using blotting paper.
19 08
Dr. Ernest Illy develops the first automatic espresso machine. There is
enormous interest from cafés all around
Europe.
19 33
Achilles Gaggia perfects the espresso machine with a piston that creates a
high-pressure extraction to produce a thick layer of cream.
19 80s
With the growth of the Internet, cyber cafés are born, providing Internet
access and coffee to users.
19 90s
With an increased penetration of PCs in homes, cyber café chains close,
and re-immerge as retail coffee café chains.
Table 1 : A br ief ti mel ine f or co ffee
Inter estin g f ac ts abo ut C offee & Ca fés:
• Coffee was first known in Europe as Arabian Wine.
• Coffee is presently the second most traded commodity in the world. It is
second only to oil.
• Nescafe was invented by Nestle because it had to assist the Brazilian
government to solve its coffee surplus problem.
Coffee is now the world’s most popular beverage, which leads to a boom
in retail and hotel cafés. The American retail café Starbucks in born.
Qu al ity So ur ces:
Barista has a check on the quality of its products every 14 days. Barista
also incorporates TQM at its headquarters in Delhi. Since Delhi is the
base for all its distribution, quality control measures are adopted there to
avoid any poor quality products being distributed.
Ser vin g S ize :
The serving size of a product is a measure, not only of quantity, but also
of value for money. The average serving size for Barista’s main product
categories is detailed in
Ba rist a Se rv ing Si ze
Pro duct Ser vin g S ize
Hot Coffee (2 kinds) 240 ml/ 300 ml
Cold Coffee 340 ml
Smoothies 300 ml
Granitas 340 ml
Mer chan di sing :
Barista sells various kinds of merchandise through its stores. The table
details the different merchandising products.
Merc han dise
Tiramisu Flavors
Coffee Mugs
Blue Curacao
Barista French Press
Barista Coffee Beans
Pri cing :
Barista has a ‘Skim Pricing Policy’. They began with a higher price,
and skimmed the cream for the market. With the sudden spurt of growth
in number of outlets, came the benefits of economies of scale. Because of
this, they have been able to gradually lower their prices, and appeal to
different segments of their target market.
Currently, their prices are the lowest they have ever been, and they can
competitively match their prices against Café Coffee Day’s prices. The
prices are constantly changing though, and the last 1-year has seen 3
changes (mostly reductions) in prices. This gradual price reduction meant
that Barista could maintain its profit- maximization policy until it could
earn large cost savings because of the benefits of high volume.
The main factors that affect their pricing are their cost of goods sold. The
costs are quite high because imports a majority of its products and
product- sources.
Pro ces s:
The order and delivery process at Barista is based on self- service,
where a customer goes up to the counter to place his order, and goes back
to the counter to pick his delivery once it is prepared.
Pos iti oning:
Consumer Profile:
According to research, over 65% of Barista’s customers are in the
15- 30 age- group. The majority of these are students and young urban
professionals.
Br and Ima ge:
Barista positions itself as a brand for anyone who loves coffee. Their
products, services and outlets are more like the traditional European
cafés, where people would meet for the love of coffee, and for an
intellectual appealing time. They position their outlets as a place “where
the world meets”, and they look to appeal to anyone in the 14- 60 age
group that loves good coffee and looks for a nice quiet time.
Prod ucts:
Barista’s product mix constitutes a wide range of products that appeal
primarily to traditional coffee lovers. Their products themselves are
traditional products with traditional names. Food items like croissant,
pastas, and sandwiches are complimentary to their coffee, and project a
very classic image of Barista. Their merchandising also consists of
primarily coffee related products like coffee beans, coffee machines, etc.
Prices :
Considering that Barista is trying to target a market whose age range is
between 18 and 60 years, a pricing policy appealing to this segment is
difficult. Extremely low prices act as a deterrent to some customers who
might regard it as an indicator or quality, while very high prices cannot
be afforded by most of the youth. But since
Barista’s current consumer profile is quite young, their prices are mostly
inexpensive, and at par with their competitors.
Peo ple:
The people at Barista are characteristically trained to be Pleasant, Polite
and Positive.
They ensure you have a quiet, uninterrupted visit and provide an escape
from the daily pressures of life. Their uniforms are in sober shades of
brown and orange, and contribute to the overall laid-back feeling of the
café.
Phys ical Ev idence :
a) Logo, Colors, Images:
Barista, since the beginning has looked to use colors in its café interiors,
logos and images; to project a “warm, earth glow, synonymous with
coffee”. Barista uses shades of Orange & Brown to good effect to promote
its “laid- back” atmosphere.
The logo is a combination of Brown, Orange and Light Yellow; with the
word “Barista” written in an upward curve, and the word “Coffee”
underneath. A simple logo that perfectly expresses Barista’s brand image:
A traditional café for coffee lovers.
b) Déc or and Arc hitect ur e:
Barista’s internal décor and architecture expresses the simplicity you
would normally associate with traditional cafés. The furniture is made of
light shades of wood, and there are comfortable sofas in bigger cafés. The
walls are shades of orange, with various photographs of the love for
coffee spread around each outlet.
c) L ite rat ur e:
The literature provided by Barista is indicative of its brand image. The
menus, posters, pamphlets are all traditionally designed, with a classic
and simple look. One aspect of particular note is their magazine, which is
privately circulated in the cafés.
The magazine encourages customers write, draw, make etc anything
creative; and this is then published in the magazine. The magazine not
only provides an avenue for advertising, but also an opportunity for
Barista to express its brand image.
Plac e:
Barista looks to cater to their target market with strategically located
outlets. Their outlets are generally located at High Street/ Family
Entertainment Centers.
Considering their generic appeal, there are Barista outlets in and around
Malls,
Cinemas, Colleges, and Offices etc. this endorses their brand image of a
café that appeals to coffee lovers of all ages.
Pro mo ti ons :
Barista currently carries out mass promotion campaigns. This is
mainly in the form of promotions in the Press, TV and Radio Medias. At
present, they do not rely heavily on advertising, but rely more on
sponsorships and strategic alliances with other corporations. Barista also
takes part in various sales promotion activities to help increase sales at
their outlets.
a) Spon sor shi ps:
Barista sponsors various events and festivals, which provides them
valuable promotion directed at strategic markets. The sponsorships are
mainly in kind, although major events are sponsored in cash also.
b) C ol labo rat ions :
Barista has entered into special collaborations and alliances with various
partners for co- marketing brands. For example, Barista entered into a
deal with Leo Mattel toys to provide the popular board game Scrabble at
every Barista outlet across the country.
This is an ideal alliance for both the organizations, because it provides
Leo Mattel with an important avenue for promoting their product, and it
provides Barista’s customers an added attraction for spending more time
at Barista outlets. Barista has also entered into partnerships with various
movies, for promotions through Barista, and recently, they tied up with
Star World for its “Abso lute ly Ev er ybo dy ” campaign.
AND
Di stri bution of St oc k
The distribution of stock at Barista begins from the coffee beans being
sent abroad for roasting. The roasting takes place in Venice, and the
beans are then supplied to the main warehouse in Delhi. Stock is then
distributed to the various Regional Warehouses, and then to the local
Warehouses. The outlets get their stock from the Local Warehouses.
Barista uses a Re-Order Level system for the distribution of their stock.
Barista out sources its transportation needs from external organizations,
and currently uses trucks as the preferred means of distribution.
2.3: Human Re sources
Barista’s boom in growth has sparked of a greater need for more and more
human resources. This poses a challenge for Barista to ensure that their
employees all across the country are well trained and provide consistent
service at every outlet.
Po sit ion
Counter Staff:
Junior Executive (0-2 year’s experience)
Executive (1-3 years experience)
Senior Executive (3-5 years experience)
Field Staff:
Territory Manager
Area Manager
Regional Manager
Support Staff:
Marketing
Supply
Human Resources
Finance
Training
The average age of Barista employee is 22. Most employees are in
the 19-26 age groups. The break-up of the various posts are given below:
Recr uit ment & Select ion:
Barista currently opens a new outlet somewhere in the country every 10-
12 days. The spurt of growth can only be successful if they have the right
people working for them.
The high expansion means that more staff is needed immediately at the
Counter Staff and Field Staff Level. This is only possible is Barista uses the
correct recruitment and selection policy
Café Coffee Day currently owns and operates 213 cafes in all major
cities in India. It is a part of India's largest coffee conglomerate named
Coffee Day, Rs. 200 crore ISO 9002 certified company. Coffee Day's most
unique aspect is that it grows the coffee it serves.
Key Fe atu res
• Pioneers of the Café Concept in India with the its first Café at Brigade
Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of
its kind) but later, with the burst of cyber cafes it reverted to its core
competency Coffee.
• Essentially a youth oriented brand with majority of its customers falling
in the 15-
29 year age bracket
• Each café, depending upon its size attracts between 400 and 800
customers daily.
• It is a place where customers come to rejuvenate themselves and be
themselves.
• USP of the Brand:
Affordable Price
Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the
India Barista Championship 2002.
Pro duct So urces :
Coffee Day's most unique aspect is that it grows the coffee it serves in its
cafes. Coff ee
Day has a well-equipped roasting unit catering to the specific
requirement of the consumers. The process is carried out under the
control of experienced personnel to meet highest quality standards. The
most modern technology available is used to maintain consistency and
roast the coffee beans to the demanding specifications of the discerning
coffee consumers. The coffee beans are supplied to all the cafés from
Chikmagalur.
The eatables at Café Coffee Day are catered by different vendors:
example: ice creams are catered by Cream Bell, Milk by Amul and
samosa’s by Patsiers Gallery.
Café Coffee Day also sells me rch and ise through its stores. 5 per cent of
the revenue comes from sale of merchandise.
Qu al ity st anda rd s:
Café Coffee Day has a check on quality all the time and in several aspects.
The operational in-charge will go around checking business, record
keeping service and check the feedback forms. The food in-charge will
look at the way food is being stored, coffee is being made, what is the
time take to extract the coffee and so on. Marketing person will go about
checking displays, how the merchandise are displayed
Ser vin g S ize :
The serving size of a product is a measure, not only of quantity, but also
of value for money. The average serving size for Café Coffee Day’s main
product categories is
Pro duct Ser vin g S ize
Hot Coffee 210 ml
Cold Coffee 350 ml
Smoothies 350 ml
Granitas 350 ml
Me rchandising:
At Café 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 cafe 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.
Café Coffee Day sells various young and trendy merchandise through its
stores:
Caps
T-Shirts
Bags
Mugs
Coffee Filters
Coffee Powders
Coffee Mints
Pens
Proce ss:
The order process at Café Coffee Day is based on self-service,
where the customer goes to the counter to place his order. Whereas they
have a flexible delivery process, where they wait for some time for the
customer to pick up the order but if the customer takes too long then the
order is delivered on his table.
Po sit ioni ng :
Co nsu mer P rof ile :
Research shows that 37% of the customers are between 20 and
24years. 27% of the customers are between the age group of 25-29 years.
60% of the customers who visit the café are male and 40% are female.
52% of customers who visit the cafes are students.
18% of the customers visit the cafes daily while another 44% visit
weekly. Each café, depending upon its size attracts between 500 and 800
customers daily, mainly between
4pm and 7 pm. Customers describe Café 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. The prices here
are perceived to be reasonable and it is a place where customers come to
rejuvenate themselves and be themselves rather than a place to be “seen
at” vis a vis other cafes.
Br and Ima ge
Café Coffee Day is a regular meeting place for 15 to 29 years old,
both male and female, who are waited on by friendly and informed staff,
and are offered the best made coffee, hot or cold, beverages and food in
an invigorating ambience. It is urban youngster’s favorite “hangout”. Its
customers are mostly young college students and young professionals. It
is for those who are young or young at heart.
Pro duct s:
Café Coffee Day product mix constitutes a wide range of products
that appeal primarily to Indian coffee and snack lovers. products have a
decided 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, masala sandwich, tikka sandwich etc. Thus they have been trying
to capture the Indian taste along with classic coffee.The best selling item
in summer is frappe, which is coffee and ice cream blended together. The
young people favor it. In winter it is cappuccino. Their merchandising
includes funky stuff like t-shirts, caps etc.
Pri ces:
Considering that Café Coffee Day knows its major customer lies in
the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy
all its customers. The price for a cup of coffee ranges from Rs.17 to Rs.54.
From the time it first started its operations, there has been only minor
changes in the pricing policy of Café Coffee Day. The changes have been
more due to the government taxes than any thing else.
Pe ople :
People at Café Coffee Day believe that “Peo ple a re hi re d f or
wh at t hey kn ow b ut f ire d f or h ow the y be have ”. Motivation
and personal skill are laid emphasize upon.
Phy si cal Ev id en ce :
a) Lo go, Co lo rs, Ima ges :
Café Coffee Day has used bright red and green colors in its logo. RED
stands for leadership and vitality. It also stands for passion (… for coffee).
The GREEN stroke harks back to their coffee growing heritage and the
coffee plantations that they own.
Café is noticeably larger than the rest of the text inside the logo box. This
denotes that Café Coffee Day pioneered the café concept in India way
back in 1996. Café Coffee Day would like to own the word “café” in the
minds of its customers.
When one thinks of a café it’s got to be Café Coffee Day. The font
used for “Café” is called SLURRY. The font looks as though the letters
have congealed out of a liquid.
It gives the impression that the word is still forming itself and evolving
into something new and something better constantly. This is the
characteristic of Café
Coffee Day’s customers and this is the characteristic that the brand too
wants to adopt. The upward SWIRL inside the logo box stands for the
invigorating and uplifting nature of coffee and the ambience at Café
Coffee Day.
Locat ions :
Café Coffee Day looks to cater to their target market with
strategically located outlets.
Their outlets are generally located in High Street/ Family Entertainment
Centers.
Considering their generic appeal, there are Barista outlets located
in and around Malls, Cinemas, Colleges, Offices, etc. This endorses their
brand image of a café that appeals to coffee lovers of all ages.
Pro mot ion:
Café Coffee Day does not believe in mass media promotions. But
they are involved in all the areas of serious consumer passion.
Ticket sales :
Café Coffee Day is involved in ticket sales in quite a few events,
Enrique being one of them. They were involved in WWE, Elton John,
and Bryan Adams ticket sales. These acts are very much appreciated by
their consumers.
It helps both the organizers as well as Café Coffee Day. Organizers need
to tell people where the tickets are available and single Café Coffee Day
logo says it all. From Café
Coffee Day’s point of view, they always ask for a certain amount of
tickets around which they have a contest. Couples can win ticket for free.
This in turn raises the awareness level as cafe staff approaches the
consumers to inform them about the contest. There is not a better
publicity mechanism then the person who is serving you telling you
about the same.
Tie-u ps :
Besides that Café Coffee Day also tie up lot of the youth brands.
Their promise to the customer is that a lot can happen over a coffee. So
every time they try to ensure something good happens to their customer.
So they have a contest going on with Levis, another one with Scooty,
Liril, latest one with Airtel Friends.
Another placement area they have is with HDFC. HDFC wanted to
promote their debit card and they choose Café Coffee Day. So 21 cafes
have debit card machines.
Ot her
Dr inks
4/ 5 3.5/ 5
Though most customers visit café for coffee, other drinks like
Granitas, Cremosas, moothies and ice teas are very popular. Cafés need to
focus on providing the right kind f drinks in the right taste and with a
certain level of quality. Ratings for the taste and quality of Other Drinks
indicate a marginal advantage for barista over Café Coffee Day, with
ratings of 4/5 and 3.5/5 respectively. Café Coffee ay should look at
different ideas for improving in this area. Significant number of
respondents also specifically expressed their preference for arista’s
smoothies, and Café coffee Day’s Cremosas.
Ea tables
3.5/ 5 3.5/ 5
Café customers usually have a light snack or side order along with
what they are drinking. This provides an opportunity for cafés to offer
these eatables at marginally higher prices, and increase their revenue.
Increase in revenue though, would be useless if hey offered substandard
eatables, which can often be caused by inefficiencies in storage and
distribution, which leads to eatables becoming stale. That’s why it is
important for cafés to provide high quality food, which allows them to
charge a premium.
Respondents rated the eatables available at both Cafés equally, this
in spite of the fact hat Barista uses Taj as their national caterers, while
Café Coffee Day has private caterers n each city.
Café Coffee Day got a positive rating with respect to the variety of their
eatables especially their Indian food), although the quality was often
inconsistent. While, respondents described Barista’s sandwiches as
“tasteless” and “sometimes stale”.
Overall, Barista did not live up to expectations considering they use the
Taj as their national caterers, while Café Coffee Day performed well in
spite of their seeming disadvantage of not having a nationally recognized
caterer.
4.5/ 5 3.5/ 5
Desserts are another valuable source of revenue for a café. The better the
taste and the uality of the desserts, the higher the premium a café can
charge. Desserts, like eatables, ave a tendency to spoil quickly if not
stored or distributed properly, so taste and quality s of paramount
importance.
The Desserts category shows a huge lead for Barista over Café
Coffee Day – one entire eating point- and this is where Barista’s choice of
a single, high quality national caterer lays to their advantage.
Respondents gave Barista a near- perfect rating (4.5/ 5) because of
their excellent standards and quality of desserts. Café Coffee Day received
only an average rating of 3.5/ , and this is one area where they need to
really concentrate on, because they are lagging or behind Barista.
Ov er all
4/ 5 3.5/ 5
Desser ts
Overall, Barista received a higher rating of 4/5, thanks almost
entirely due to its Desserts.
Otherwise, both Barista and Café Coffee Day performed almost
identically.
The closer Café Coffee Day gets to Barista in the Desserts products
area, the harder it ill be to differentiate the two in terms of taste a&
quality. The equality of their performance in the core product area,
would then lead to a larger differentiation in their peripherals.
Pri ces
Customer’s perception of prices plays a very important role in a
service sector industry.
Because of the intangible nature of a service, prices are often regarded an
approximate indicators of quality.
Pricing policy affects the cafés revenue directly. The higher the price, the
larger the profit margins, but the lower the price, the higher the market
share. In a retail café chain though, volumes are what count- that’s why
the more competitive the price is, the better or the firm.
The survey asked respondents to rate the prices of both the café chains on
a scale of 1-5,
1 being most expensive, and 5 being the cheapest. This would directly
illustrate whether he customer perceives price to be inexpensive,
affordable or expensive.
Co ffe e
3/ 5 4/ 5
Respondents rated Café Coffee Day’s coffee prices as highly inexpensive,
with a rating f 4/ 5, while Barista got an average affordability of 3/ 5.
This is strange though, considering the prices of coffee at Barista and Café
Coffee Day re within 8% of each other, and in a lot of the cases, Barista’s
actual prices were lower han Café Coffee Day’s.
Ot he r
Dr inks
3/ 5 4/ 5
The ratings for the prices of Other Drinks followed an almost identical
pattern to the ratings for Coffee. And in this case, all of Barista’s Other
Drinks were less expensive han Café Coffee Day’s.
Respondents may not be aware of this, because they gave Café Coffee Day
an excellent4/ 5, and only an average rating of 3/ 5 to Barista.
Ea tables
2.5/ 5 3.5/ 5
Although the eatables provided at both cafés are mostly different, the
prices for the common eatables are approximately the same in both cafés.
Barista received another poor rating of 2.5/ 5, a whole point behind Café
Coffee Day’s
3.5/ 5. Again, if the actual prices are used, there is less than a 10%
difference in the average prices of eatables at both café chains.
Desser ts
2.5/ 5 3.5/ 5
In the Desserts category, although most of the products were more
expensive at Barista, here isn’t as big a difference as is shown in the
ratings of the 2 cafés.
Respondents somehow seem to still perceive Barista’s prices as higher
than Café Coffee day’s.
Ov er all
3/ 5 4/ 5
Overall, Café Coffee Day has done well to live up to its USP of being an
affordable rand. Almost all respondents perceived their prices to be lower
than Barista’s.
Barista on the other hand, although their prices are within 10% of Café
Coffee Day’s, received a very poor rating. This is strange considering that
in almost 50% of the products; Barista is priced lower than Café Coffee
Day. This could only indicate that customers are still not aware of the
reduction in price, and make customers aware of the close proximity of
both cafés prices.
Deli ver y of P rod uct
The delivery of the product plays a vital role in improving customer
service. Factors like
the time taken to place/ deliver an order, and the process of placing and
delivering an order contribute to the customer’s overall experience. The
sample was asked to rate
Order Time and Delivery Time on a scale of 1-5 (1 being the slowest and
5 being thequickest), to help us discover how much time is usually taken
to complete delivery cycle.Respondents were also asked to rate the Order
Process and Delivery Process, on a scaleof 1-5 (1 being the most
inconvenient, and 5 being the most convenient), so that we
canunderstand how much value is really added to the service, in terms of
convenience.
Or de r Time
3.5/ 5 4/ 5
Order Time is the time taken from when the customer wants to place an
order, till when
the order process is completed. The order process largely affects the order
time.
Café Coffee Day scored higher than Barista, with a rating of 4/ 5 to 3.5/ 5.
Some respondents attributed Café Coffee Day’s faster order time to the
fact that they had
more staff on hand than Barista (in a café of the same average size).
4/ 5 3.5/ 5
Delivery Time is the time taken from the point when the customer gives
the order, towhen it is delivered to the customer. It largely depends on
the preparation time/ processand the delivery process, and is an indicator
of how long a customer must sit idle until hisorder is ready for
consumption.
Deli ver y
Tim e
59
Barista scored marginally higher here, indicating that their orders, once
entered wereprepared and delivered quicker than Café Coffee Day.
4/ 5 4/ 5
Order Process is the sequence of actions taken by a customer to place an
order.
Barista and Café Coffee Day’s order process is basically self-service. When
the customeris ready to place an order, he goes to the counter and tells
the attendant what he wants.
This process earned both the cafés a near- perfect rating of 4/ 5.
Respondents liked thefact that they could take their own time, and place
their order when they found itconvenient.
Deli ver y
Proce ss
3.5/ 5 4.5/ 5
Delivery Process is the process of delivering the product to the customer
once it is prepared and ready for consumption.
Barista’s delivery process is again, self-service. When an order is ready,
the Barista attendant calls out the customers name and the customer has
to go to the counter and collect it. Barista received an above – average
rating of 3.5/ 5. Although none of the respondents found the Barista
delivery process very inconvenient, some said that they would have
preferred having the order delivered to their table.
Or de r
Proce ss
Café Coffee Day’s delivery process involves a restaurant- like approach.
When the order s ready, and the customer has not collected it from the
counter, a Café Coffee Day attendant comes to the customers’ table and
delivers the order. Café Coffee Day received an excellent rating of 4.5/ 5
for this process. A lot of the respondents praised Café Coffee Day for their
delivery process.
Ov er all
4/ 5 4/ 5
Overall both Barista and Café Coffee Day performed exceptionally,
getting an overall eating of 4/ 5, indicating that there isn’t much
difference between the two in the overall delivery of the product.
Barista scored higher than Café Coffee Day in Order Process and
Delivery Time, whileCafé Coffee Day scored higher in the Order Time
and Delivery Process.
It is significant to note, that although the convenience of Café Coffee
Day’s Delivery
Process was rated higher than Barista’s, Barista still managed to have
better Delivery Time rating. This would indicate that Barista’s
preparation time could be significantly lower than Café Coffee Day’s.
Barista’s Order Process received a near-perfect rating, but their Order
Time wasn’t as quick as Café Coffee Day’s. Respondents attributed this to
the fact that the average Café
Coffee Day outlet has more attendants than a Barista of the same size- so
the Order Times significantly reduced because there are more attendants
to cater to the customer.
Sta ff
The staff at any service establishment plays a very important role in the
proper functioning and success of that establishment. Especially in the
restaurants and cafés –the staff makes or breaks the place. For the purpose
of this study, the sample was asked torte the staff at a café on four counts:
Behavior, Manners, Helpfulness and Service.
This would help give us an insight on how customers feel about their
interactions withthe staff of a café, and how this affects their overall
experience.
Beh avi or
4.5/ 5 3.5/ 5
The behavior of the staff directly contributes to the customer’s overall
experience. Their actions, reactions and conduct while interacting with
the customers will directly affect the level of customer satisfaction.
Barista received an excellent rating of 4.5/ 5, which reflects on their
training and development program. Respondents also especially
highlighted the Barista staff’s nonintrusiveas a great quality which really
made their experience more enjoyable.
Café Coffee Day received an above average rating of 3.5/ 5, but they
really need to work on their staff behavior if they hope to catch up to
Barista.
Manne rs
4.5/ 5 3.5/ 5
Perhaps the most important aspect of interacting with customers is the
way an employee speaks to them. His mannerism and etiquette should be
polite and courteous.
Barista again scored very highly with their Employees manners, and
respondents were overall extremely happy with the politeness and
courtesy of Barista’s staff.
Café Coffee Day received an above- average rating of 3.5/ 5 again, which
indicates that although their training and development programs might
not be bad, they still need to do lot of work to be at par with Barista.
He lpf ul ness
4/ 5 3.5/ 5
The staff should be able to assist and help customers with their queries
and needs. A little help or assistance goes a long way in improving the
customer’s view of the organization.
Both Barista and Café Coffee Day performed quite well, earning ratings of
4/5 and 3.5/5respectively.
Ser vice
4.5/ 5 3.5/ 5
A customer’s visit to a coffeehouse doesn’t end with his purchase of
coffee. He goes there for the service the organization provides, and this
service is provided directly by the staff. Barista performed exceptionally
well, with another excellent 4.5/ 5 rating. CaféCoffee Day stayed at the
above- average level once again with only a 3.5/ 5.
Section 5: CONCLUSION
5. 1 A reas of Exc ellence
Both cafés have certain areas where they have been consistently
performing well. These re essentially the strengths of the brand, and
Barista & Café Coffee Day need to capitalize on these strengths to
increase their market share and brand loyalty. The main areas of
excellence, based on the Case Studies & Market Survey, have been
identified as follows:
Ba rist a
1. Str ong Br an d Im age :
Barista has a strong and clear brand image. Their customers can easily
identify and relate to the Barista brand. This helps increase and maintain
brand loyalty.
2. Exce llent H uman Reso urce :
According to the survey, Barista received an excellent rating for the
service and behavior of their staff. This is a huge advantage, especially in
a service organization. Barista must strive to keep this advantage.
3. Ambience & Déco r:
Another significant area of excellence is the kind of ambience and décor
Barista cafés have. Respondents to the survey, including whose who
chose Café Coffee Day as their choice of café, gave Barista a near perfect
rating for their Ambience& Décor.
4. Str ong base fo r expan sion & g ro wt h: Barista have worked hard
on heir brand image and human resources, and have a strong base for
future expansion and growth- whether nationally or internationally.
Ca fé C of fee Da y
• Café Coffee Day has done extremely well so far to project itself as
unaffordable youth- oriented brand. But there are still certain areas
where their brand needs to be much stronger.
• With regard to the physical evidence associated with the brand, Café
Coffee Day needs to do a lot of work if they hope to catch up with
Barista.
My first recommendation for Café Coffee Day is to clean up the décor at
every outlet, wherever unnecessary advertising is taking place.
• Although it might be an important source of revenue, long-term
customer perception of the brand isn’t very positive.
• Café Coffee Day would do better to provide promotional space for its
partners with the use of clever collaborations, and not printed
advertisements and posters everywhere.
• My second recommendation is that Café Coffee Day looks at its current
recruitment, selection and most importantly, its current training policies.
• Customers are not happy with the behavior and service of the staff, and
Café Coffee Day is lagging far behind Barista is this aspect.
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