Cafe Coffee Day - Brand Transformation through Repositioning - Group 4 Adrita, Dipankar, Shikhar, Shweta and Subham Introduction Cafe Coffee Day (CCD) pioneered the cafe culture in India in 1996. As the Indian urban class got more and more exposed to cable television and media, they sought a more world-class experience. Although CCD had a first mover advantage, the competitive environment provoked the management to think about the repositioning of the brand in order to sustain itself in the marketplace. Triggers that caused CCD to consider brand rejuvenation In order to understand the triggers that caused CCD to consider brand rejuvenation, let us look at how the customers, competition and the company (CCD) have behaved so far. 1. Consumer: The target consumer of CCD was young urban youth. With the opening up of the Indian economy and the influence of the Western culture, Indians were becoming more globally aware. The disposal income of the Indian middle-class was also on the rise. Their population grew and they also became more and more acquainted with the rest of the world. They cherished individualism and carried a sense of aspiration and dynamism. Their buying also emulated the global buying habits such as the following preferences: ● Branded experiences offering a sense of adventure and escape ● Brands that openly sought out dialogue with their customers ● Brands that could deliver a unique experience 2. Competition: The Indian retail coffee market was growing. Landor, the consulting organization conducted “competitive audits” for various cafe retail brands in India. Landor looked at the various competitors on the basis of their differentiation and relevance in order to map the category. It found out that the CCD differentiators (like premium coffee, pioneers in coffee culture, value for money, etc) were no longer unique and exclusive as it can now be easily replicated by the competitions. Landor also inferred that the regular guy/girl archetype was no longer sufficient for CCD to compete in this highly competitive market. 3. Company: For the management of the company, CCD stood for the quality coffee, brewing skills and authentic quality of service. CCD wanted coffee to play a central role in the customer experience, whereas for customers, coffee was just another reason to come to CCD and meet friends. Therefore, there was a clear gap between what the customers wanted and what the management provided. This study source was downloaded by 100000762170229 from CourseHero.com on 07-12-2022 03:49:27 GMT -05:00 https://www.coursehero.com/file/44198031/CCD-Group-4pdf/ To the customers, the brand did not look the same and had inconsistent brand delivery across several customer touchpoints. Clearly, there was a difference between what the customer perception was and what the management intention was. All the triggers made the consulting firm and CCD realize that CCD needed a coherent brand rejuvenation, new positioning and evolved brand identity design. Analysis of the various positioning options In order to evaluate the positioning options, it is very important that the statement resonates with the company’s strategy, and is relevant to the CCD’s target customer. At the same time, it should help the Indian cafe to be able to differentiate itself among its competitors. To evaluate the options let’s look at them from the following point of view: ● Should build upon existing equity ● Must be relevant to the existing customers ○ Lending to CCD brand greater dynamism ○ Lending greater aspiration ● Differentiation Parameters Builiding upon existing equity Benefit (Rational and Emotional) Lending to CCD brand greater dynamism High Real Coffee, Real Moments Medium A great place for friends to catch up; convenient and affordable. Break for ordinary/mundane, sense of escape Nice, calm place; natural, convenient which resonates a sense of affliation amd belonging. Fresh perspective, accessible and affordable. Also generates a sense of inspiration and forward thinking. Good time spent with good people in a great café A better shared coffee experience A stylish café that is symbolic of a new emerging youthful India Medium-High High High Medium-High High Good Company Social Hub Very High The playful environment developed by such a postioning would lead to a moderate-high dynamism Low This study source was downloaded by 100000762170229 from CourseHero.com on 07-12-2022 03:49:27 GMT -05:00 https://www.coursehero.com/file/44198031/CCD-Group-4pdf/ Lending greater aspiration Differentiation Relevance to the target customers The positioning does not resonate with an aspirational lifestyle. Rather it reflects a person who is stressed and dissatisfied with the mundane lifestyle and just wants to find a way to escape. This place will be about authentic friendship and community. However, it still would not make it a place for an aspirational youth A place meant for the fresh generation of young customers redefining and reshaping the face and culture of India. It will turn into a place for highly inspiring and a forward thinking generation. High High High Me too café culture that borrows heavily from the West. On-the-go, young customers dealing with the day-to-day stress and the pressure of getting ahead A place to linger over great coffee to create friendship and community Contemporary and stylish café where the youth of India can come together and grow. Low Medium High A genuine café would be somewhat moderately relevant to their target customers. We can see that the overall customer experience along with the differentiating aspects provided by the cafe will highly go along with the customers CCD targets Their target customers do not want to experience CCD in order to get away from their mundane life. In fact, these are people who are always inspired and forward thinking. The above evaluation clearly shows that the social hub positioning would perform well in all the considered parameter and hence should be considered by CCD for repositioning. This study source was downloaded by 100000762170229 from CourseHero.com on 07-12-2022 03:49:27 GMT -05:00 https://www.coursehero.com/file/44198031/CCD-Group-4pdf/ Powered by TCPDF (www.tcpdf.org)
