Publsihed: Tuesday, 17 May, 2016 09:50 AM
Serving it Steamy Hot for Years with Cafe Coffee Day
Management Gurus have always opined that Brand will be born and dying during Brand life cycles and will need push for their sustainability.
MBA students will remain curious to understand Brand phenomenon both in peak and low so that it might help them as wisdom lessons when they will be custodians of Brand in future.
MBA Rendezvous brings you Brand stories under Brand Marquee column. Read today on (CCD) Cafe Coffee Day
Cafe Coffee Day’s success story takes us back to the year 1996 when the initial chapter of this coffee saga began. The man behind this amazing success story mostly keeps to himself and so we see little of him. However, his work has spoken enough. V.G Siddhartha, believes in being a little recluse with only his work of art do all the talking. The brand story of this coffee outlet has just begun as it seems.
The basics of the coffee business show that the world grows annually 120 million coffee bags costing around $7 billion roughly. However, when the same was in the form of retail coffee consuming the numbers becomes $100 billion. So, instead of focusing on the target $7 billion he focused on the $100 billion and opened the first retail outlet in Bangalore with the corporate tagline “A lot can happen over coffee.” The message instantly touched millions of young hearts in the country.
V.G. Siddhartha started his journey with coffee with a small Cafe` Coffee Day outlet in the city of Bangalore in the year 1996. Today he has spread his wings in 28 different states in India with over 1500 outlets and in varied locations outside India. Some of the worth mentioning places are Karanchi, Dubai, Prague, Vienna and at Czech Republic.
CCD, at a glance :-
- Total consumption in India is approximately 10,000 tonnes.
- The annual growth rate of the brand – 5.6%
- Per capita consumption annually is – 66 grams yearly
- Footfalls on an average – Per day 300 per cafe`
- Time dwelt per cafe` on an average – 45 minutes
- A perfect place where students, professionals, retired, homemakers and the elderly hangs out and be themselves instead of just being seen at the joint. Mostly visited post work, post school, colleges and on weekends and special occasions.
- Plays the role of being an ideal venue for business discussions, celebration of special occasions and simple “Time Pass” and dates.
- The major audience of CCD encompasses an age group in between 20 to 30. This is 54% of the total audience percentage for the brand.
- Barista is it’s primary competitor in India. Some other brands who are in the queue are Cafe` Mocha,Qwicky, Costa Coffee, java Green, Cafe` Pascucci and McDonalds.
Intelligent are those who do not dive into the stock market blindly. Staying in the stock market for long can result to a burn out. The best approach is to wait for the gold bits and pieces which float on the surface and try to grab them. This concept inspired Siddhartha. It was two years when he returned to Bangalore from Mumbai as he wanted to join his family business and contribute towards it in a big way.
His idea was to make coffee an everyday affair for people. At first he invested 30K into Sivan Securities and bought stock card. Thanks to his father who gave him a sum of five lakhs to use it for business, it helped him in a big way. He bought this very own ancestral coffee plantations, traded out bits and pieces of it, got back profit and then went upward into the stock market with great confidence. Siddhartha loved his roots, the Chikmangaluru soil was gold. His inheritance to this 500 acre plantation was enough to give him a solid foundation from where he invested and expanded. Currently, he is the proud owner of over 10,000 acres of plantations alone.
Today, the brand CCD is the biggest section of ABCTCL or Amalgamated Bean Coffee Trading Company Ltd. In Asia, it is the largest producer of the coffee beans called Arabia. Today it is the leading exporter of coffee fetching the nation over forty five million US dollars annually. V.G. Siddhartha is having a 12% stake in the company which today has over 5000 employees and has numerous subsidiaries.
So, this is what the story was about Cafe` Coffee Day. He is one of the Forbes “NextGenEnterpreneur” who has taken family business to a global level. He has showed that if there is willpower then a person can achieve just anything. He never gave up. Today Cappuccino, Latte and Mochas common names in India, thanks to the brand Cafe` Coffee day.
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