The strategies employed by the team varied as per the period of cycle and will be provided in brief in this section. There will be a special emphasis on the role of pricing in shaping of these strategies as this was the core functioned handled by me along with other inputs provided in various divisions and stages.
This was the first period of simulation. The reports available were few, so the decisions were taken on the basis of market share reports, brand awareness report and brand purchase intention report.
From these reports we were able to define that there needs to be an increase in advertising spends for SUSI and we can afford to cut down on the advertising spends for SULI. For SUSI we found that it will be beneficial to target others and singles in the advertising as both have similar needs in terms of product specifications, whereas SULI could be targeted to Pros and High Earners. Accordingly our advertising emphasis was shifted to accommodate the relevant categories. Since there was a gap in awareness and purchase intention we needed to first redefine our sales force distribution in accordance with the purchasing patterns for the segments defined.
In this stage there was dearth of reports and only following reports were available:
Using a combination of these reports, it was communicated to the rest of the teams on what part of the marketing and sales force should be altered so that we can achieve our defined set of objectives.
Also, there was a decision to order for more reports.
: It is one of the major elements of marketing mix. Also pricing decision affects other elements such as product features, channel decisions and promotion etc.
There are certain pre-requisites for pricing decisions. We need to take into account following things before deciding the final price.
Conduct marketing analysis: segmentation, targeting and positioning.
Decide on marketing mix: product, distribution and promotional tactics.
Estimate how quantity demanded varies with price.
Calculate all overheads: Fixed + Variable.
Evaluate competitor actions and likely response.
Set pricing objectives: Profit maximisation, revenue maximisation, or status quo
We decided to opt for value based pricing which requires us to price our products as per the value it offers to the customers relative to our competitors.
If we consider SUSI its price has been decreased continuously to make it more competitive. It started with retail price of 241 and ended with close to 210. Our R&D efforts also helped us reduce our price.
If one analyses SULI market it will be found that SULI though already having good brand awareness dint had enough brand purchase intention. So it was very important to target the high potential high earner segment while keeping leadership position in the pro segment. Both these segments are quite price insensitive and hence we were able to increase price from 491 to 562 while maintaining our position.
Our team (Team U in world SECA1) extensively used perceptual mapping in ensuring that the products we launch or modify are in sync with the segments we target. We identified our nearest competitor as well as the market leader using market share analysis.
After that, we identified the extent of influence of brand characteristics on the multidimensional scales in order to identify the key characteristics we need to target. Then we analysed using the brand characteristics of our competitors and saw their relative position on the perceptual map. Then, we altered the product characteristics so that our products come nearer to the market segments marked in the perceptual map.
If you need assistance with writing your essay, our professional essay writing service is here to help!Essay Writing Service
When we were launching new products (SUNA and SUMA which remained in the last period), we made sure that these were not eating away the market share of our initial brands namely SULI and SUSI. The new products were launched at a later stage. The objective behind launching several products in quick succession was to capture those markets which were not touched by our initial products. Eg: till period 5, we did not have any product which would cater the high-earners and singles. So, we launched SUMA and SUNA for singles and high-earners segments respectively so that we get some market share in those segments and meanwhile, we ensured that our other initial brands were not near to the segments where the two new products were targeted.
Cafe coffee Daylogo.png
CCD has its roots in Chikmagalur, home to some of the best Indian coffees.CCD has its verticals covering the entire value chain of coffee consumption in India. Its different divisions are:
CCD Fresh ‘n’ Ground (which owns 450 coffee bean and powder retail outlets).
CCD Square (high level coffee bar. one in Bangalore.).
CCD Xpress (which owns 730 CCD kiosks).
CCD Takeaway (which owns 9000 vending machines).
CCD Perfect (FMCG Packaged Coffee) division.
Market Segments and Targeting/Positioning
When CCD opened its first outlet at Brigade Road, Bangalore in 1996, it positioned itself more as a Cyber Internet Cafe. These were the early days of internet boom in India. CCD realized that there exists a potential for building a coffee brand for the Indian market, and hence it launched the first cyber café based on international trends, but keeping with Indian ethos, replaced beer with coffee.
In its early days, however, CCD had neither clear positioning in sight nor significant presence. But after few hiccups, CCD fought back with vengeance. Its subsequent strong positioning as a “third place” away from the home and college or workplace for the “young” and “the young at heart” turned the tables in CCD’s favour.
With the advent of cable TV and growing consumerism due to increase PPP, the urban youth was exposed to the lifestyles of youth across the world. They were looking for an experience that was of world class standards and yet easily accessible. CCD fulfilled this intrinsic demand.
CCD has different formats such as cafes, lounge, square etc to cater to different segment of consumers. The pricing and offerings across the format varies as per the positioning. The CCD outlets at corporate offices offer discounts as per the deal with estate owners. Lounges are place with relax settings and slightly higher priced to attract high earners.
Rated highly in taste & Quality. This is further helped by the fact that they grow their own coffee, and this provides them an important platform for future expansion and growth.
Value for money proposition: Café CCD is positioned as an “affordable” brand. This strategy has worked extremely well thus far.
Strongly youth orientationted:
The CCD brand is, and always has been, extremely focused towards youth. In India where over 40% of the population is under the age of 20, there is huge potential for CCD to become one of the country’s largest youth brands. The untapped market and potential for future growth is enormous.
CCD targets customers in the bracket of 15- 29, so it tries to fit into the wallet of this range of age group.
A cup of coffee ranges from Rs.17 to Rs.54. The price of the deserts ranges from Rs.25 to Rs. 500.
Sales and Distribution Strategy
CCD was smarter than its competitors in finding the right strategic locations. CCD has a tremendous advantage because it has its own plantations, procurement agents, curing works, stores etc.
CCD is vying for a presence at High Streets/ Family Entertainment Centres like malls, important markets, Hospitals (AIMS, Apollo), corporate offices, complexes, Institutes etc.
CCD almost opens one outlet everyday which shows its aggressive expansion strategy. But it is also closing down an outlet approximately an outlet every 2 weeks which shows performance falling short of expectations. Here is a matter of concern cautious expansion is required after due diligence.
CCD has introduced a coffee machine “CCD wakeup” that dispenses a cup of coffee if one adds other ingredients. It has been launched by a 10 person R & D team that claims superior performance in terms of convenience and attractive pricing
CCD intends to be among top 3 global players. There local growth is quite assured and their global aspirations to a large extent depend upon how they position themselves compared to other established players.
CCD aims to achieve 2000 outlets by 2015. This infrastructure could be used to sell other products that have synergy with the CCD Brand. It is however not wise to stretch the brand into too many categories. Only those products that compliment the brand can be sold.
CCD wants to make use of ABCTL’s (Parent company) picturesque coffee plantations fields into a new business opportunity. It has identified the luxury tourism market as a suitable growth driver. With this they will be catering to an older target audience as well. So the intention is to cater to all age groups through brand presence in various offerings and create goodwill.
Advertising & Communication Plan
CCD has started seeing marketing as a revenue centre and hence has allowed its cafes to be as an on-ground medium for brand communication of other brands.
It itself doesn’t depend on mass media advertisements and focuses mainly on BTL activities. CCD believes its close to 1500 outlets is biggest source of advertisement. Apart from that it is very much into social media marketing (Facebook, twitter etc) because of its targeted youth market. Tie-ups with youth centric brands are another mode of communication. CCD also sells its merchandise through its outlets and also spending heavily on e-commerce.
CCD should look into its current recruitment, selection and most importantly, its current training policies. Huge investment in this regard is required. Customers are not happy with the delivery and service of staff, and CCD is lagging far behind other players in this aspect.
It should have number of staff at its outlets based on not just current sales but must also consider potential sales lost as well due to inefficient service.
It should retain its current pricing policy without any compromise with service standards.
Its positioning as a conversation place is very unique and must not be tempered.
Estimation of Market potential/ Market forecast
Identifying various market segments
Target market segments and justification
How do you position your brand across segments?
Realistic marketing budget required for: advertising and sales force expenditure
Advertising & Communication plan
Timeline to implement such a plan
Cite This Work
To export a reference to this article please select a referencing stye below:
Related ServicesView all
DMCA / Removal Request
If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: