A Business Development plan to increase the market share of Café Coffee Day in India

Introductions

The Café Coffee Day known as CCD in youngsters of India. The company is a division of Amalgamated bean coffee trading company which is one of the India’s largest coffee conglomerates(Gayathry, 2013). Café Coffee day is the company involves in coffee related activities starting from coffee beans growing than the other processes like harvest, roast, blend, export and retailing also(SUSE – www.suse.com, 2013). Company has its own 10,000 acres land valued USD 250-300 Million which they use for the purpose of growing coffee. Other that company also procures coffee from around 11000 small coffee growers across country(Gayathry, 2013). CCD is one of the largest companieswhich are producing Arabica coffee beans in Asia(Gayathry, 2013).

Company is based in India and it has retails chain with around 1497 outlets across India and company is also planning to expand its business by adding up around 500 more outlets in India (The Economic Times , 2013). Company has its footprints across 200 cities in India which they are planning to expand up to 400 cities by the end of 2015(The Economic Times , 2013).Mr.V. G. Siddhartha is the founder and owner of the company and he is from Karnataka state in India.(Gayathry, 2013). As per the latest news, company is has issued IPO (Initial Public Offering) in 2015 for the expansion of the business and steady business growth of the company(Veer Bhumi Chittorgarh, 2015).As on December 2015 Company has around 46% of market share in India(Veer Bhumi Chittorgarh, 2015).

1.1 Background

Company has lunch its coffee business in 1996 by the name of Amalgamated Been Coffee Trading Company(Dhillon, 2014). Company has started its first ever outlet in 1996 at Bangalore location of India(Coffee Day Enterprice Limited, 2015). There after Coffee Day Enterprise Limited has started its business operation in 2008 by converting their partnership firm M/s Coffee Day Holding Co. in to the Coffee Day Enterprise Private Limited(Coffee Day Enterprice Limited, 2015). Initially being a part of Coffee Day Group, company was involved in many businesses including coffee, commercial office space leasing, Hospitality, retails and exports, Information technology and its enabled services(Coffee Day Enterprice Limited, 2015). Later on company has converted in to public limited company in 2015 and changed the name from Coffee Day enterprise Private Limited to Coffee day enterprise limited(Coffee Day Enterprice Limited, 2015). Company has grown very fast and it has reach near to 1500 outlets across the 200 cities in India and currently around 3,00,000 guests comes to café coffee day across country in one day(Dhillon, 2014).

1.2 Business Opportunity

Café Coffee day is currently the Indian’s biggest chain business and outlets doing business of coffee(Business Standard , 2015). After the latest development of issuing IPO, the company owner Mr. Siddhartha has provided information about the utilization of money raised through IPO will be used for the purpose of paying of the debt burden which will decrease the interest cost of company and the half of the raised fund will be used for the purpose of launching new outlets across the country(Business Standard , 2015). Company is looking forward to grow the brand which is grown at home means the coffee which has grown in India(Coffee Day Enterprice Limited, 2015). Company has made the country proud by winning the award of Most Exciting Brands in India in 2014. Company has researched that India the country as whole has capacity of around 2000 coffee outlets where company currently has near to 1500 outlet and gap of 500 more outlet is visible so company has found the great business opportunity and as per the latest updates company has plan of business expansion of around new 500 outlet by the end of year 2015 to reach the 2000 outlet(The Economic Times , 2013). Coffee consumption across the country is increasing and company is looking forward to have more increased in coffee consumptions. Below chart shows the coffee consumption increase in last couple of year which shows the opportunity for the growth in coffee business(Coffee Day Enterprice Limited, 2015)