Cafe Coffee Day's Expansion Strategies


Code : COM0018

Year :

Industry : Retailing

Region : India

Teaching Note:Not Available

Structured Assignment :Not Available

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Coffee in the Land of Tea India was one of the world's largest exporters of tea and also its biggest consumer. The per capita consumption of tea in India was 640 grams compared to 50 grams for coffee. Only 14% of the 350,000 tons of coffee that India produced annually was consumed within the country, while the remainder was exported. But, in the late 1990s, with the emergence of Italian-style coffee bars in urban India, the country witnessed a second wave in organised coffee retailing...

Cafe Coffee Day In 1996, ABCTCL started India's first coffee chain, Coffee Day at Bangalore. A typical customer visiting the café was between the age of 15-29 years. Coffee Day designed its outlets to appeal to the young and trendy by painting the stores with vibrant colors like lime green, yellow, purple and orange. Coffee Day's most distinct aspect was its exclusive relationship with the plantation division of its parent company, ABCTCL. It enjoyed a cost advantage due to its direct access to the coffee beans from the ABCTCL's 5,000 acre plantations...

New Ventures To further increase its reach, in addition to Coffee Day ABCTCL started new ventures like Coffee Day Xpress, Coffee Day Take Away, and Coffee Day Fresh'n Ground. Coffee Day Xpress was a chain of food and beverage kiosk that was based on the concept of convenience Café. This division was targeted at the customers who were on the move and desired quick services. The customers included people who visited shopping malls, movie theatres, offices and educational institutions...

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