The Cafe Coffee Day (CCD)
I think most of the people know about Cafe Coffee Day (CCD). Once in our life, we visited Cafe Coffee Day (CCD) and we all have some memories with this Cafe. Have you ever wonder about the Business Model, Earning or revenue Model or working of Cafe Coffe Day (CCD) so today in this post we will tell you about the Business Model of CCD and other pieces of information regarding CCD. Before Revenue and Business model lets learn something regarding CCD.
Cafe Coffee Day (CCD) Wiki/Bio
Café Coffee Day (CCD) is a cafe which is founded by late V. G. Siddhartha. Café Coffee Day (CCD) is a subsidiary of Coffee Day Enterprises. Cafe Coffee Day (CCD) is founded in 1993 by late Sir V. G. Siddhartha. The headquarters of Cafe Coffee Day (CCD) is Coffee Day Square, Vittal Mallya Road, Bangalore, Karnataka, India.
The total number of outlets of Coffee Day Square, Vittal Mallya Road, Bangalore, Karnataka, India. Cafe Coffee Day (CCD) has around 1722 cafe outlet in India in over 200 Cities. Cafe Coffee Day (CCD) has also run outside the country in 4 countries i.e. Austria (Vienna), Czech Republic, Egypt, and Nepal.
Chairman of CCD is late V. G. Siddhartha (Former) currently SV Ranganath is the interim chairman of CCD. The total revenue of Cafe Coffe Day(CCD) is around ₹43.31 billion (US$630 million) in the accounting year of 2017-18. Cafe Coffe Day(CCD) give employment to around 19,943 people. The main products of Cafe Coffe Day(CCD) are Coffee, Tea, Pastries, cappuccinos, and Smoothies. The Subsidiary of CCD are Café Emporio, Coffee Day Fresh ‘n Ground, Coffee Day Xpress, Coffee Day Take Away, Coffee Day Exports, Coffee Day Perfect, Coffee Day Beverages.
“Siddhartha went missing on 29 July 2019, and his body was found in the Nethravathi river backwaters two days later. A letter, assumed to be written by V.G. Siddhartha addressing the board of directors and staff, was made public in which he takes responsibility for not creating a profitable business model”
Business Model of Cafe Coffee Day (CCD)
“A lot can happen over coffee” this is the tagline/slogan of Cafe Coffe Day(CCD). The tagline of CCD is very appropriate and right because, under this cafe big deals sign, two lovers met, etc. The Business Model of CCD is not that much complex or that much easy. So, let’s understand the business model of Cafe Coffee Day.
Cafe Coffee Day(CCD) has a goodwill/brand name in the market which helps him to get the customers. CCD made their goodwill by achieving great thinks like awards by ICICI bank, Government awards like Brand Equity’s Most Trusted Brands in foodservice and much more.
- Wide network
Cafe Coffee Day(CCD) has a wide range of the network. CCD has around 1,722 outlets available in most of the cities and towns which help CCD to grow and gain their customer. Competitors of CCD are Barista which has around 400 outlets Java Green have around 150 outlets.
- Focus on 3As
CCD launches its first cafe in 1996 in Bangalore at that there were no or few cafe stores is present but they are not providing the value of the money there charges is high. At that time CCD introduces their outlets. CCD focus on the 3As: accessibility, Affordability, and Acceptability.
- Tie-ups and formations
Cafe Coffee Day(CCD) tied up with many brands which help and give a great push to CCD. CCD tie-ups with some Publishers and Producers for organizing book, movie, song launches. If you buy Something from CCD you will get the autograph of the artist on the book or Cassete. CAafe Coffee Day also ties up with BPCL petrol pump to open their outlets in their premises. CCD also tie-up with Educational Institutions to have their Outlets on their campus.
- Reinforcing brand image with the cluster approach strategy
CCD created an entry barrier in the coffee category. CCD follows the Reinforcing brand image with the cluster approach strategy. Cluster approach strategy means to habituate the consumers to a brand or a product. CCD created entry barrier by opening a 4-5 outlet in a single area/street or town. This idea came from the four successful cafes at Indira Nagar(Bangalore).
This strategy made the operation easier and this make the replenishment easier if any cafe ran out of stock. To cut the cost there is only one manager for all the outlet in a single street or area or town.
We can take the example of Bandra. In Bandra, there is six-outlet of CCD. And all these six outlets have only one manager which supervise all the outlet.
- Lower Price
Cafe Coffe Day focuses on the youth/college students/Young generations which don’t have more money. They set their price low as compared to their competitors like Barista. CCD price is low by 30-40%. Due to the low price the young generation get attracted by the CCD whereas the Barista Lacked behind due to change in their management.
- National Brand
CCD was one of the first brands to start the cafe of coffee in India and to make it a national Brand. This all became possible Due to their taste, price, etc. India is a country where tea is loved more but CCD habituate the consumers through coffee. North and east states like tea instead of coffee but CCD made it possible. One of the problems of CCD is Transportation of freshly roasted coffee from Chikmagalur to their outlets.
Revenue Model of Cafe Coffee Day (CCD)
Earning model of CCD is not that much complex it easier and have many cost-cutting which increases the revenue. So let’s start the revenue model of CCD
- Company Owned Outlets
The outlet of CCD is company-owned. All the outlets of CCD are owned by the company itself none of the outlets is a franchise. It is costly to set the outlet of the cafe but there is more profit in the long term. This also increases the control of quality, service. Franchise outlets may cost brand value
- Self Produced Coffee
The coffee beans which is used in the CCD is produced by the CCD itself. Founder of CCD V.G. Siddhartha has around 4000 acres of land which is used to produce the coffee. Now the raw material is available in cheap and this increases the revenue of CCD.
Marketing Strategy of Cafe Coffe Day (CCD)
CCD opted for Co-branding. cafe Coffee Day never opted for mass media advertisement. CCD believed that the chain of their outlet would do marketing itself and the brand name will do everything. CCD never run their ads on televisions or radio’s they always co-branded with some brand. For example, CCD was first seen in an ad with Yamaha Motors.CCD also promote via film production. E.g. CCD was promoted in two movies which have big stars like Amitabh Bachchan, Aishwarya Rai, Priyanka Chopra, and Salman Khan. CCD also got barter deal with some big and international brands like WWE, HDFC, etc.
Achievement of (CCD) Cafe Coffee day.
CCD has a very wide network with over 1722 cafe outlet in India and operating in five countries including India. Cafe Coffe Day is a well know brand in India mostly popularly in Adults/youth. According to research in 2008 CCD rank number 2 in the Brand Equity’s Most Trusted Brands in foodservice. Barista is the rival company of CCD and this is ranked at number 5. CCD is the market leader in India and ICICI Bank give an award to Cafe Coffee Day for “Exclusive Brand Retailer of the Year”.
Cafe Coffee Day is a successful and innovative idea which is lead by late V.G. Siddhartha. CCD has a great business model and revenue model. Everything is fine with CCD right from its working to earning. Soon we will publish a case study on Cafe Coffee Day. If you have any suggestions regarding Cafe Coffee Day (CCD) Business Model | Revenue Model | Marketing then comment below and if like this article then do share on social media