COMPARATIVE STUDY OF BARISTA AND CAF COFFEE DAY

POSTED BY Skyline Business School / July 17, 2010 / POSTED IN Dissertation

TAGS: Disseration reprt marketing, Updates Name: Rambir Kaushik (2008 -2010) Title: COMPARATIVE STUDY OF BARISTA AND CAF COFFEE DAY

Executive Summary I make a report on the comparative study of Barista Vs caf coffee day on the basis of their human resources (recruitment& selection, training &development, performance appraisal), their marketing mix, distribution system to their outlets, 7Ps of each, SWOT analysis of Barista and Caf coffee day, customer satisfaction level towards Barista and Caf coffee day and I did the comparative rating to the Barista and Caf coffee day based on the following factors:1. Taste & Quality of products. 2. Prices of products. 3. Order/ Delivery time & Order/ Delivery process. 4. Performance of staff. 5. Ambience. 6. Availability of products. 7. Value for money of products. 8. Overall performance

Objectives: 1. 2. 3. 4. To understand market performance of Barista & Caf Coffee Day. TO do a SWOT analysis. To understand consumer perception. To analyze there target consumer& marketing mix (7Ps).

Recommendations & Suggestions: Barista

Barista has an extremely strong brand image, but they need to work hard on improving their customer perception of being and expensive brand. Barista and Caf Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand.

Thats why my first recommendation for Barista is, to carry out a promotion campaign to ensure that their target market is well aware of their current low prices. This would help change customer perception and turn Barista into an affordable brand. Another backlash of having such a strong traditional caf brand image is that customers have very high expectations of the taste & quality of products. Barista needs to work hard at this aspect, especially for coffee and eatables products.

My second recommendation is for Barista to look at its coffee beans suppliers and

coffee brewing process to ensure that it is the best it can be.

This is especially important considering the international expansion Barista is undertaking. Barista should also look at the Taj, their national suppliers for eatables and desserts, and either improve the taste & quality of eatable, or look at another supplier- because as of now, they are not living up to expectations, and losing customers to Caf Coffee Day. On a smaller note: the Barista delivery process should change, so that a caf attendant delivers the coffee to the table. This may seem insignificant, but it can go a long way in improving customer satisfaction. Caf Coffee Day

Caf Coffee Day has done extremely well so far to project itself as an affordable 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, Caf Coffee Day needs to do a lot of work if they

hope to catch up with Barista. My first recommendation for Caf Coffee Day is to clean up the dcor 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 isnt very

positive. Caf 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 Caf 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

Caf Coffee Day is lagging far behind Barista is this aspect. Limitations: I. II. III. IV. Limit of time Cost Accuracy of data its difficult to meet people for survey or interview

Conclusion: Areas of Excellence Both cafs have certain areas where they have been consistently performing well. These are essentially the strengths of the brand, and Barista & Caf 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: Barista 1. Strong Brand Image:

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. Excellent Human Resource:

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 & Dcor: Another significant area of excellence is the kind of ambience and dcor Barista cafs have. Respondents to the survey, including whose who chose Caf Coffee

Day as their choice of caf, gave Barista a near perfect rating for their Ambience

& Dcor.

4. Strong base for expansion & growth: 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.

Caf Coffee Day

1. Highly rated Taste & Quality of products: Caf Coffee Day got a high rating in the market survey, for the Taste & Quality of their products. If they work on this aspect, there is huge potential for them to attract customers, just based on the taste and quality of products. This is also helped by the fact that they grow their own coffee beans, and this provides an important base for future expansion and growth. Caf Coffee Day even won the Barista Coffee- Making Championship for the Best Coffee. 2. Value for money proposition: Caf Coffee Day is projected as an affordable brand. This strategy has worked extremely well so far, and Caf Coffee Day got a high rating, both for their prices and for their value for money, in the market survey. 3. Strong youth orientation: The Caf Coffee Day brand is, and always has been, extremely youth- oriented. In a country where over 40% of the population is under the age of 20, there is huge potential for Caf Coffee Day to become one of the countrys largest youth brands. The untapped market share and potential for growth is enormous.