18-06-2013, 03:28 PM
ABC & Café Coffee Day Innovation Case Study
Café Coffee Day.pdf (Size: 106.37 KB / Downloads: 57)
A lot can happen over coffee
Cafe Coffee Day is owned by the
ABCTCL, which is the largest
producer of Arabica Coffee in
Asia. Started in 1996 by VG
Siddarth, CCD pioneered the
cafe concept in India. By 2000,
the company had just 14 outlets
in six cities.
Then the company started on a massive expansion program that has seen it set up nearly 1000
outlets in India in ten years. It also has shops in Vienna and Karachi and has plans to expand to other
overseas destinations.
Background
Cafe Coffee Day is owned by the ABCTCL, which is the largest producer of Arabica Coffee in Asia
Started in 1996 by VG Siddarth, CCD pioneered the cafe concept in India By 2000, the company had
just 14 outlets in six cities. Then the company started on a massive expansion program that has seen
it set up nearly 1000 outlets in India in ten years. It also has shops in Vienna and Karachi and has plans
to expand to other overseas destinations.
Why is it Innovative?
1. Brand experience: CCD made coffee drinking popular among Indian youth by offering an brand
experience environment and other value additions. This meant that customers were willing to
pay much higher for a cup of coffee.
2. Reinforcing brand with cluster approach: CCD created entry barriers by opening multiple outlets
within short distance of each other in major cities. The Mumbai suburb of Bandra, for example
has six outlets.
3. Multiple formats: CCD has various formats of Cafe’s including High Street Cafes, Garden Cafes.
Mall Cafes, Highway Cafes etc.
4. Company owned franchisee: All the outlets are company owned. While this makes it more
expensive to run, it ensured that there was no brand dilution.
5. Vertical integration: by integrating the value chain, ‘from bean to the cup’, ABCTCL was able to
reduce costs, assure adequate supply demand, and gain economies of operation.