market research on retail coffee outlets

8/12/2019 market research on retail coffee outlets

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MARKETING RESEARCH PROJECT

ON

CUSTOMER ATTITUDE TOWARDS RETAIL COFFEE CHAINS A STUDY INDELHI, W.R.T BARISTA, CCD, NESCAFE

Submitted by

Mohini

Under the supervision of

Prof. Jagriti Mishra

Submitted to

Department of Fashion Management Studies (FMS) National Institute of Fashion Technology (NIFT)

(Ministry of Textiles, Govt. of India)

GH-0 Road, Behind Infocity

Gandhinagar 382007. Gujarat

http://www.nift.ac.in

DEC, 2013


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ACKNOWLEDGEMENT

Firstly, all the glory to My Father who blessed me with this opportunity and gave me persistence and determination throughout my study.

I would like to take this opportunity to express my deepest gratitude to those who contributedto my study and those who guided, inspired and helped me throughout. I wish to express mygratitude towards my parents who supported me throughout my studies.

I would like to direct a special thanks to my supervisorMrs Jagriti Maam , who alwaysencouraged me to do better. I hereby acknowledge the professional guidance of my co-supervisor Mr Bhaskar Banerjee. I would like to convey my sincere gratitude to the peoplewho contributed to making this study a success.

Lastly, I would especially like to say thank you to Shakti Prabha and Jayshree Behra for

being there when I needed you the most.


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TABLE OF CONTENT

S.no. Title Page no.

1 INTRODUCTION 10

2 REVIEW OFLITERATURE

24

3 METHODOLOGY 31

4 DATA ANALYSIS 34

5 SUMMARY ANDCONCLUSION

53

6 BIBLIOGRAPHY 58


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LIST OF TABLES

Table no. Title Pg no.

3.1 Most visited coffee house 41

3.2 Why you drink coffee? 42

3.3 Where you drinkcoffee??

43

3.4 Factors affecting 44

3.5 Variety of coffee 45

3.6 Taste of coffee 46

3.7 Quality of coffee 47

3.8 Price 48

3.9 Ambience 49

3.10 Customer Service 50

3.11 Location 51

3.12 Offers/Discounts 52

3.13 Menu 53

3.14 Time to serve 54

3.15 Experience 55

3.16 Ranking 56


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3.17 Decision Making 57

3.18 Reason for Visiting 58


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LIST OF PIE CHARTS

Pie Chart no. Title Pg no.

3.1 Most visited coffee house 41

3.2 Why you drink coffee? 42

3.3 Where you drinkcoffee??

43

3.4 Factors affecting 44

3.5 Variety of coffee 45

3.6 Taste of coffee 46

3.7 Quality of coffee 47

3.8 Price 48

3.9 Ambience 49

3.10 Customer Service 50

3.11 Location 51

3.12 Offers/Discounts 52

3.13 Menu 53

3.14 Time to serve 54

3.15 Experience 55


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3.16 Ranking 56

3.17 Decision Making 57

3.18 Reason for Visiting 58


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LIST OF ANNEXURES

Annexure 1(Questionnaire) 54


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CUSTOMERS ATTITUDE TOWARDS THE RETAIL COFFEE CHAINS STUDYIN DELHI

BACKGROUND TO THE RESEARCH

Our thirst for coffee seems almost insatiable. By one estimate, 3,300 cups of coffee areconsumed every second of the day worldwide (Le Figaro 1999). Today, the world market forall types of coffee is conservatively estimated at US$11 billion per year (Sturdivant 1999).Consumer awareness about the quality of different coffees has increased steadily in recentyears. Market studies show that consumers are more discriminating about differences between groups of coffee, including distinctions based on product origin, taste characteristics,such as smoothness,aroma and acidity, organic characteristics, and other factors. This studydetermined consumers perceptions and attitude, in order to form a better understanding oftheir preference to the coffee houses available . However, perception is not a singular concept but an interactive process. Therefore, the present study, done in the NIFT, Gandhinagaraimed to determine consumers perceptions of coffee house , by focusing on the perceptual process of consumers. The firstobjective was to determine consumers Preference in choiceof Coffee chain, Secondly Factor affecting the customer choice of coffee chains and thirdly,Comparative analysis between different coffee chains. A questionnaire was used as the datacollection technique. A total of 50 questionnaires were administered by customers of coffeehouses. The study location was Delhi. This contributed to the probability that a diverse groupof respondents participated. The study population consisted of 40% females and 60% male.


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CHAPTER - 1

INTRODUCTION

Today Coffee has become a lifestyle. Also, it has caught the fancy of today's generation -

youth. These were not the typical coffee drinking target customers. But now they are a big part of the target base for coffeehouses. And it is fashionable to be seen at the Coffee Pubs. Itis in a way, a lifestyle statement.That is bad news for tea - still the favourite brew for a majority of Indians, which has beenlosing out to coffee in recent years. India is one of the world's largest exporters of tea andalso one of its biggest consumers. But it is coffee drinking which is increasingly becoming astatement of young and upwardly mobile Indians.

And coffee bars, an unheard of concept till a couple of years ago, are suddenly big business.Corner bars like these are offering more than just coffee and snacks to their customers. Formany of their regular patrons, a visit to these bars is also a part of the western lifestyle they somuch want to identify with.The Coffee retailing sector in India is booming today, with several companies active in themarket. Some are local entities, some have come from abroad and have tied up with localcompanies, and some seem to prepare themselves for an entry sooner or later. The marketgrowth is expected to be 20 to 30% annually in the next couple of years.Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first cafat Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was

restricted to the intellectual, the South Indian traditionalist and the five star coffee shopvisitor. As the pure (as opposed to instant coffee) coffee caf culture in neighboringinternational markets grew, the need for a relaxed and fun hangout for the emerging urban

youth in the country was clearly seen.

1.1 CoffeehouseA coffeehouse shares some of the characteristics of a bar, and some of the characteristics of arestaurant, but it is different from a cafeteria. As the name suggests, coffeehouses focus on providing coffee and tea as well as light snacks. This differs from acaf , which is aninformal restaurant, offering a range of hot meals, and possibly being licensed to servealcohol. Many coffee houses in the Muslim world, and in Muslim districts in the West, offer

shisha , powdered tobacco smoked through a hookah. In establishments where it is tolerated -

which may be found notably in the Netherlands, especially in Amsterdam - cannabis may besmoked as well.


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met to do business. By 1739 there were 551 coffeehouses in London; each attracted a particular clientele divided by occupation or attitude, such as Tories and Whigs, wits andstockjobbers, merchants and lawyers, booksellers and authors, men of fashion or the "cits" ofthe old city centre. According to one French visitor, the Abb Prvost, coffeehouses, "whereyou have the right to read all the papers for and against the government," were the "seats ofEnglish liberty.The banning of women from coffehouses was not universal, but does appear to have beencommon in Europe. In Germany women frequented them, but in England and France theywere banned. milie du Chtelet purporsely wore drag to gain entrance to a coffee house inParis. In a well-known engraving of a Parisian coffeehouse of c. 1700, the gentlemen hangtheir hats on pegs and sit at long communal tables strewn with papers and writingimplements. Coffeepots are ranged at an open fire, with a hanging cauldron of boiling water.The only woman present presides, separated in a canopied booth, from which she servescoffee in tall cups.The traditional tale of the origins of Viennese coffeehouses begins with the mysterious sacksof green beans left behind when the Turks were defeated in the Battle of Vienna in 1683. Allthe sacks of coffee were granted to the victorious Polish king Jan III Sobieski, who in turngave them to one of his officers, Franciszek Jerzy Kulczycki. Kulczycki began the first

coffeehouse in Vienna with the hoard. However, it is now widely accepted that the firstcoffeehouse was actually opened by an Armenian merchant named Johannes Diodato.In London, coffeehouses preceded the club of the mid-18th century, which skimmed awaysome of the more aristocratic clientele. Jonathan's Coffee-House in 1698 saw the listing ofstock and commodity prices that evolved into the London Stock Exchange. Auctions insalesrooms attached to coffeehouses provided the start for the great auction houses ofSotheby's and Christie's. In Victorian England, the temperance movement set up coffeehouses

for the working classes, as a place of relaxation free of alcohol, an alternative to the publichouse (pub).Coffee shops in the United States arose from the espresso- and pastry-centered Italiancoffeehouses of the Italian-American immigrant communities in the major U.S. cities,notably New York City's Little Italy and Greenwich Village, Boston's North End, and SanFrancisco's North Beach. Both Greenwich Village and North Beach were major haunts of theBeats, who became highly identified with these coffeehouses. As the youth culture of the

1960s evolved, non-Italians consciously copied these coffeehouses. Before the rise of the


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Seattle-based Starbucks chain, Seattle and other parts of the Pacific Northwest had a thrivingcountercultural coffeehouse scene; Starbucks standardized and mainstreamed this model.In the United States, from the late 1950s onward, coffeehouses also served as a venue forentertainment, most commonly folk performers. This was likely due to the ease ataccommodating a lone performer accompanying themself only with a guitar, even withlimited floorspace; the political nature of much of 1960s folk music made the music a naturaltie-in with coffeehouses with their above-referenced association with political action. Anumber of well known performers like Joan Baez and Bob Dylan began their careers performing in coffeehouses. Blues singer Lightnin' Hopkins bemoaned his woman'sinattentiveness to her domestic situation due to her overindulgence in coffeehousesocializing, in his 1969Coffeehouse Blues .From the 1960s through the mid-1980s, many churches and individuals in the United Statesused the coffeehouse concept for outreach. They were often storefronts and had names likeThe Gathering Place (Riverside, CA),The Lost Coin (New York City), and Jesus For You(Buffalo, NY). Christian music (guitar-based) was performed, coffee and food was provided,and Bible studies were convened as people of varying backgrounds gathered in a casual"unchurchy" setting. These coffeehouses usually had a rather short life, about three to fiveyears or so on average. An out-of-print book, published by the ministry of David Wilkerson,

titled, A Coffeehouse Manual , served as a guide for Christian coffeehouses, including a list ofname suggestions for coffeehouses.

1.3 Format

Coffeehouses in the United States often sell pastries or other food items.Cafes may have an outdoor section (terrace, pavement or sidewalk cafe) with seats, tables and parasols. This is especially the case with European cafes. Cafes offer a more open publicspace compared to many of the traditional pubs they have replaced, which were more male

dominated with a focus on drinking alcohol.

One of the original uses of the cafe, as a place for information exchange and communication,was reintroduced in the 1990s with the Internet cafe or Hotspot (Wi-Fi). The spread ofmodern style cafes to many places, urban and rural, went hand in hand with computers.Computers and Internet access in a contemporary-styled venue helps to create a youthful,modern, outward-looking place, compared to the traditional pubs or old-fashioned diners thatthey replaced.


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1.4 International variation

American coffee shops are also often connected with indie, jazz and acoustic music, and willoften have them playing either live or recorded in their shops. Coffeehouses are oftengathering places for underage youths who cannot go to bars.In the United Kingdom, traditional coffeehouses as gathering places for youths fell out offavour after the 1960s, but the concept has been revived since the 1990s by chains such asStarbucks, Coffee Republic, Costa Coffee, and Caff Nero as places for professional workersto meet and eat out or simply to buy beverages and snack foods on their way to and from theworkplace.In France, a cafe also serves alcoholic beverages. French cafes often serve simple snacks suchas sandwiches. They may have a restaurant section. Abrasserie is a cafe that serves meals,generally single dishes, in a more relaxed setting than a restaurant. Abistro is a cafe /restaurant, especially in Paris.In Australian cities, a traditional European cafe culture is thriving as a result of significantimmigration from mainland Europe in the 19th century and 20th century. Theseestablishments often cluster along certain streets and with the weather allowing curb sideseating much of the year certain areas resemble a large party on a Friday or Saturday evening.In Malaysia and Singapore, traditional breakfast and coffee shops are called kopi tiams. The

word is a portmanteau of the Malay word forcoffee (as borrowed and altered from thePortuguese) and the Hokkien dialect word for shop . Menus typically feature simple offerings:a variety of foods based on egg, toast, and kaya (jam), plus coffee, tea, and Milo, a maltedchocolate drink which is extremely popular in Southeast Asia and Australasia, particularlySingapore and Malaysia.In parts of the Netherlands where the sale of cannabis is decriminalized, many cannabis shopscall themselves coffeeshops.

In modern Egypt, Turkey and Syria, coffeehouses attract many men and boys to watch TV or play chess and smoke shisha .

1.5 Barista Coffee

Barista Coffee is a chain of espresso bars in India. Headquartered in Delhi, Barista currentlyhas espresso bars across India, Sri Lanka and the Middle East. It was founded in 1997, p Led by the dynamic duo of Ravi Deol & the marketing ace Sandeep Vyas; Barista was the fastest

brand to make it to the list of super brand's and is ranked among the top 50 phenomenons thatchanged India. Starbucks corporations decided to enter into an agreement that allowed


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Barista Coffee to use the brand for cafes as long as it allowed Starbucks to use the brand"Barista" for brewing equipment. Italy's Lavazza has now acquired Barista.Barista Coffee in India can be easily called the pioneers of coffee culture in India.

Established in February 2000 to recreate the ambience and experience of the typical Italianneighborhood Espresso Bars. Barista Coffee aims to provide a comfortable and friendly placefor people to relax and unwind over a cup of coffee.1.5.1 Ownership : Barista Coffee Company is owned by Lavazza, Italys largest coffeecompany. Lavazza is one of the most important roasters in the world, a leader in Italy with a46.5% share of the retail market (in value, source: Nielsen). It operates in over 80 countries,in the Home and Away-from-Home sectors (Foodservice, Vending and Retailing). In 2006sales totalled USD 1.2 billion.

1.5.2 Outlets : Barista at present has over 170 Espresso Bars and 7 Barista Crmes in over 29locations: Delhi, Gurgaon, Bangalore, Hyderabad, Kolkata, Mumbai, Chennai, Pune,Ghaziabad, Noida, Chandigarh, Mohali, Dehradun, Shimla, Mussorie, Jaipur, Kanpur,Lucknow, Bhopal, Indore, Bhubaneshwar, Ahmedabad, Baroda, Cochin, Coimbatore,Manipal, Guwahati etc. making it one of the largest retailers of specialty coffees in Asia.Barista further has laid international footprints in Sri Lanka (4 outlets), Oman and UAE (6

outlets).1.5.3 Ambience : Barista Coffee is not just about drinking coffee but also about the entireexperience. At Barista the Joy of Coffee is reflected in the warm ambi ence, the exoticflavours and the friendly service provided by the brew-masters. To add to the informalambience, Barista Espresso Bars offer games like Scrabble, Pictionary and Battleship for theguests. Barista Espresso Bars were the first place where the customers were called by theirfirst names to create an atmosphere of informality and friendliness. Barista in its outlets haveWi-Fi enabled corners for executives-on-the-go. Open seven days a week, most BaristaEspresso Bars begin brewing from 10 a.m. and are open till late night.1.5.4 Coffee : Barista Coffee places strong emphasis on the quality of coffee beans and the process of preparing, rich aromatic coffee. The coffee is created with carefully hand pickedmature cherries of the Arabica coffee plant, ensuring a uniform and high quality harvest. This100% Arabica coffee is sourced from Tata Coffees plantations in Karnataka, India. House

blend beans are sourced and roasted in India by Tata Coffee. The international coffees suchas Costa Rican, Kenyan and Jamaican Blue Mountain are sourced from the respectivecountries and custom roasted in Italy.


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1.5.5 Food : In an attempt to further enhance the experience at the Barista Espresso bars, ithas on offer a delicious snacks and dessert menu. On offer are authentic Italian food itemssuch as biscottis, paninis, wraps, twisters, puffs, sandwiches and other munchies to go alongwith its wide coffee range. To cater to the sweet tooth, Barista also offers mountains of icecreams, oodles of chocolate, chunks of crumbly apple pies, walnut brownies etc.

1.5.6 Awards

Barista the Super Brand Barista received the coveted Retail Award, voted by consumers as the 'Most admired

retailer of the year 2007: Catering Outlets' at the 4th IMAGES Retail Awards (IRA) 2007,felicitating Indias top performing companies and professionals in the business of retail.

Barista has also been voted Barista has been recognised by the HTSuperbrand two years insuccession. Food Guide as the best place to have coffee. It is also therecipient of the Caf ofthe Year award given by The Times Group in the Times Food Guide.A huge shot in the arm and validation of the companys efforts has been the recognition given

independently by BBC, The Times of India and Business Standard asthe Brand of the Year(2002).Barista was also awarded the TOPS award for Specialty Coffee Excellence by the Specialty

Coffee Association of America (SCAA) which recognizes specialty coffee retailers whodifferentiate themselves through better business practices.Recently Barista was also recognized by the HT Food Guide as the best place to have coffeeas well as Caf of the Year award given by The Times Group in the Times Food Guide.For the year 2003-05, Barista has been selected as one of the 100 superbrands in the countryand is amongst the youngest brands in the list, to achieve this status.1.5.7 Marketing initiatives : In order to enhance this unique experience, Barista focuses onthemes and avenues that complement coffee such as music, books and art. Barista has tied upwith brands such as Planet M and Corner Book Store to open espresso corners in these stores.Here, the Barista ambience has been re-created within the establishments giving theconsumers the opportunity to enjoy a cup of delicious coffee while browsing through a book,enjoying music or appreciating art.Barista is a comfortable place to spend time with friends, family, strangers, the girl next door,her neighbour's aunt, well, just about anyone. And even if you drop by alone, they have someof the finest beverages to keep you company.


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To begin with, there's the Barista House Blend - their signature blend of coffee and selectinternational coffees from some of the most noted coffee growing regions of the world.Followed by an extensive list of steaming hot espressos, cappuccinos and lattes made fromthe finest Arabica beans.To cool things down, they have fruit smoothies and chilled granitas in tropical flavours. Andfinally, a refreshing range of cold and frozen coffees that will make anyone who tries themreturn for more.Barista traces its roots back to the old coffee houses in Italy - the hotbeds of poetry, love,music, writing, revolution and of course, fine coffee. Drawing inspiration from them, theyhave single-handedly taken on the challenge to open people's eyes to the simple pleasures ofcoffee and revolutionize the coffee drinking experience in every city that we invade.To live up to this promise, they have employed skilled Italian roastmasters at their roastery inVenice. Sourced only the finest quality Arabica. And have had our espresso bars designed toreflect a warm, friendly and inviting atmosphere. Add to this, a menu you can ponder over forhours and you have everything you need to escape the pressures of daily life.At last count, the aroma of fine Barista coffee permeated in over 100 espresso bars acrossIndia, Sri Lanka and the Middle East.

1.6 Caf Coffee Day

Caf Coffee Day is a division of India's largest coffee conglomerate, Amalgamated BeanCoffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 croreISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates,the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It isone of Indias leading coffee exporters with clients across USA, Europe & Japan.

With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffeesand with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanningthe entire value chain of coffee consumption in India. Its different divisions include: CoffeeDay Fresh n Ground (which owns 354 Coffee bean and powder retail outlets), Coffee DayXpress (which owns 341 Coffee Day Kiosk), Coffee Day Take away (which owns 7000Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee)division.Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first cafat Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was

restricted to the intellectual, the South Indian traditionalist and the five star coffee shop


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visitor. As the pure (as opposed to instant coffee) coffee caf culture in neighboringinternational markets grew, the need for a relaxed and fun hangout for the emerging urban

youth in the country was clearly seen. Recognizing the potential that lay ahead on thehorizon, Caf Coffee Day embarked on a dynamic journey to become a large organized retailcaf chain with a distinct brand identity of its own. From a handful of cafs in six cites in thefirst 5 years, CCD has become Indias larg est and premier retail chain of cafes with 498 cafesin 85 cities around the country.Enthused by the success of offering a world -class coffee experience, CCD has opened aCaf in Vienna, Austria and is planning to open other Cafes in the Middle East, EasternEurope, Eurasia, Egypt and South East Asia in the coming months.

1.6.1 Cafe Formats

Caf Coffee Day has been experimenting with caf formats for quite sometime. Backed bythe motivation of providing customers with exciting choices as well as constantly redefiningthe caf experience, CCD has ventured into the following formats:

1. Music Cafs provide customers with the choice of playing their favourite musictracks on the Digital Audio Jukeboxes installed at the caf! There are around 85 cafes

with such jukeboxes. 32 cafes also provide customers with the visual treat of watchingtheir favorite music videos by means of Video Jukeboxes.

2.Book Cafs offer the perfect solution to people who think that the coffee experience isincomplete without browsing through the bestsellers or reading a classic. CCDs bookcorners accentuate the age-old combination of coffee and books. This exciting concept has been successfully tested at 15 cafes in 12 cities across India and the numbers are set to growexponentially. CCD has tied up with English Book Depot, one of Indias leading book

distributors for placement and rotation of reading materials appealing to Caf Coffee Days

discerning customers.3. Highway cafs on the Bangalore Mysore highway and NH-8, presents the traveler en

route not only with good coffee and scrumptious snacks amidst great ambience but also withclean restrooms to get rid of that weariness from the road!

4. Lounge cafs at Hauz Khas , Delhi and Southern Avenue, Kolkata (Southern Avenue)and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the livelyambience and comfort of a caf. With exquisite interiors, exotic menu and thematic musicCCD Lounge offers a whole new experience to the connoisseur while assisting the latter


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through its team of hostesses who are poise and style incarnate and are looked upon asfashion icons.5.Garden cafs at M.G Rd, Bangalore and GKII, New Delhi combine the joy ofrejuvenating amidst verdant landscapes and pots of coffee.

6.Cyber cafs at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi combine the urge tosurf, not to mention get connected through the internet while enjoying perfectly brewed cups ofcoffees, both domestic as well as International blends!

Mission statement

To be the best caf chain in the world by offering a world class coffee experience at

affordable prices.

Brand association

CCD has emerged as an interactive alternative media for brands to communicate with theyoung at heart.

Other media, such as electronic, print and outdoor, offer brand communication through visualand audio modes to a large section of the populace, both relevant and irrelevant. Caf CoffeeDay offers a much more interactive, targeted communication, sometimes adding even a tastedimension to a brand idea!

Various in-caf collaterals used to impart visibility to a brand inside a caf or to add theelement of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures,Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc.Over the years, CCD has successfully promoted a number of brands/products/events throughvarious innovative tactics and promo ideas. Cashing in on its mass captive audience, we atCCD have entered into tie-ups and promotions which are well knit with our brand promiseand which can be creatively used to woo the Indian Youth.

Customer profileThe caf is a meeting place for 15-29 year olds, both male and female who are served the bestcoffee by friendly and informed staff, in an uplifting and invigorating ambience.Research shows that teen-agers form 25% of our customers while 38% of the customers are between 20 and 24years and another 23% belong to the age group of 25-29 years. Studentsand young professional comprise around 72% of our customers.18% of the customers visit the cafes daily while another 44% visit weekly. Each caf,

depending upon its size attracts between 500 and 800 customers daily, mainly between 4pmand 7 pm. Customers describe Caf Coffee Day as the place they frequent most after home


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and workplace/college. It is a place where th ey meet friends and colleagues, in groups of 3or more; a place where they rejuvenate and are free to be themselves rather than a place to beseen at vis a vis other cafes.

AwardsCafe Coffee Day: the best Indian Food Services Brand Business World November 8th,2004Food services top 51. McDonalds

2. pizza hut

3. caf coffee day

4. barista coffee

5. dominos

Out of the 3 coffeehouses studied, CCD is visited the most. The mean of CCD visited is morethan Barista and Nescafe.

1.7 NESCAFE

The rich taste of coffee is reflected in its rich history. The beginnings of NESCAF can be

traced all the way back to 1930, when the Brazilian government first approached Nestl. NESCAF a combination of Nestl and caf. NESCAF was first introduced inSwitzerland, on April 1st, 1938. For the first half of the next decade, however, World War IIhindered its success in Europe. NESCAF was soon exported to France, Great Britain andthe USA. American forces played a key role in re-launching NESCAF in Europe by virtueof the fact that it was included in their food rations. Its popularity grew rapidly through therest of the decade. By the 1950s, coffee had become the beverage of choice for teenagers,who were flocking to coffee-houses to hear the new rock n ro ll music. In 1965 NESCAFcontinued to bring the world's best cup of coffee by introducing freeze-dried soluble coffeewith the launch of Gold Blend. Only two years later they invented a new technology tocapture more aroma and flavour from every single coffee bean. In 1994 the 'full aroma' process was invented to make the unique quality and character of NESCAF even better. Nestl's commitment to sustainability is deeply rooted in the company's core values, whichdrive the Company's way of doing business. (Nestl Corporate Business Principles) Theendorsement of these values is made through a whole set of principles that are enforced atevery stage of production, by every business or production unit, employee, partner or vendor.


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Their long heritage in the country helps them understand people better. Also with theunderstanding of coffee that they have acquired globally, they want to leverage their expertisehere as well.

1.7.2 Cold coffee category

The company is also examining several possible segment forays under coffee, however,moving away from hot to the cold category.Though the market for products such as cold coffee is still very small in India, experiencesfrom their Caf outlets have made them realise the growing demand for it. They areexamining possibilities of launching such products in India.In fact, the coffee market in India in itself is rather small with great opportunity for growth.And, as a company, they focus more to grow their coffee business here.


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PROBLEM DEFINITION

1. What is the customer Preference in choice of Coffee chain?

2. What factors does affect the customer choice of coffee chains?

This research project will include the following issues-Identifying the factors that influence the customer the most (factors such as coffee taste,ambiance, affordability, etc.)

Customers purchasing behaviour and attitude towards coffee houses (in terms of whichcoffee-house they visit, for what purpose they visit a coffee-house, on what occasions they

prefer to visit a coffee-house, who influence there preference, how much they spend etc.) .


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CHAPTER - 2

2.1 LITERATURE REVIEW

2.1.1 STORM IN THE COFFEE CUP

In the late 1990s, a silent cafe revolution was sweeping urban India. Coffee drinking wasincreasingly becoming a statement of the young and upwardly mobile Indians. Coffee bars,an unheard concept till a couple of years ago, had suddenly become big business and coffee bars like Barista, Cafe Coffee Day (CCD) and Qwiky's had become quite popular.Though being a late entrant, Barista took elite India by storm. With 105 branches in 18 citiesand annual sales of Rs. 650 million, Barista was clearly the leader in the coffee retailing business in 2002. What made Barista different from others was the ambience at its outlets.Barista recreated the ambience and experience of the typical Italian neighborhood espresso bars in India. The interiors were bright, trendy and comfortable. One could play chess, read books, listen to music, enjoy the arts, surf the Net and sip an Espresso Italiano, or Iced CafeMocha. CCD, which was started in 1996, had opened 50 outlets in 9 cities by 2002, withannual sales of Rs. 100 million.

CCD also provided a relaxing ambience with eye-catching crockery and bright dcor. The paintings on the wall were made by young artists, with the objective of promoting youngtalent. CCD outlets also promoted their paraphernalia such as caps, T-shirts, and coffee mugs.With 21 outlets in 5 cities and annual sales of Rs. 43 million in the year 2002, Qwiky's wasalso a strong contender in the growing coffee business. It positioned itself as a place to hangout and spend time leisurely. One could order an Espresso, Cappuccino, Lattes, Mochas,Panini et al. One could even choose between frothy or intense, icy or piping hot, and aromatic

and exotic coffee. It also had books and magazines outlets and a casual wear under theQwiky's brand. Though CCD was the first to enter the coffee retailing business in India, itfailed to leverage on the first mover advantage. By 2002, Barista, which entered the market in2000, and Qwikys, which entered i n 1999, had 105 and 21 branches respectively. CCD hadonly 50 branches. According to company sources, the reason for its slow growth was the timetaken to complete the back-end operations of its retail outlets. Analysts felt that Barista andQwiky's also experienced similar problems but they grew faster than CCD because they

realized that running cafe is a hospitality business and one needs to create the right ambianceand experience and back it up with strong logistics.


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In 2002, competition in the coffee retailing business was beginning to heat up with all thethree players looking for opportunities for growth.Barista was opening a store every nine days and it also seemed to be better placed than itscompetitors due to the strong support of Tata Coffee, which had a 34.3% stake in Barista.However, analysts felt that it wouldn't be easy for Barista to maintain its leadership positionin future. By 2002, Barista had spent Rs 600 million to establish its chain of 105 stores and inthe process had accumulated losses. Though its operating profit was 17% of the sales, it wasnot expected to turn black soon because of its rapid expansion plans. Also as Barista importedeverything from chairs to coffee machines to coffee beans, any depreciation in the value ofthe Indian Rupee would make imports costlier and squeeze its margins further.

2.1.2 A NOTE ON THE COFFEE INDUSTRY IN INDIA

India ranks 5th among the top 10 countries of the world accounting for 3 % of the total worldcoffee production and exporting 80 % of the total produce.It is also the fifth largest coffee producer. Being a traditional tea consuming country, theaverage coffee consumption in India was quite low at 10 cups per person annually (ReferTable I). People in the Northern region preferred instant coffee in contrast to the people in the

south, who preferred traditional filter coffee.Coffee, a household beverage confined to South India became quite popular in the late 1990s.The late 1990s saw the emergence of coffee chains. Moreover, there was a transition from theconventional and out dated coffee house to a more sophisticated and trendy coffee bars. In thelate 1990s, non-traditional coffee retailing outlets like coffee bar chains, coffee vendingmachines, and specialty coffee powder shops offered exciting growth opportunities. Theyconstituted 50 % of sales in the Indian Coffee Industry. The growth of these specialty and

gourmet coffee shops was a result of the economic and demographic changes, higherdisposable incomes, increasing number of workingwomen, and increasing awareness andexposure to global trends.


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2.2 LITERATURE REVIEW 2

2.2.1 Branded coffee houses a rage in India

Anuradha Shenoy in Mumbai | July 16, 2005Go to any of the mushrooming coffee bars and what do you find? The menu displays not justa range of coffees, but an ever increasing list of soft drink concoctions and other beveragesmingling with snacks and mini-meals.Strange? Maybe. With more than 500 coffee cafes in the country, up from 175 in 2002,coffee was the most happening beverage. And the players, from Barista Coffee Co toBangalore-based Cafe Coffee Day, were opening outlets practically every weekend.So far so good. Today, at Barista Coffee Co, coffee sales are much less than its otherofferings.Sixty per cent of its sales are brewed from teas, smoothies, food items and merchandise. AtBangalore-headquartered Cafe Coffee Day, 70 per cent of its sales come from beveragesincluding coffee. At Cafe Mocha, coffee sales are up from 3 per cent three years ago when itfirst started to 17 per cent today.What does all this mean? Coffee sales have not really stirred the storm they were expected to

be. But this has not deterred the coffee cafes from stretching their brands.Internationally, coffee sales are virtually stagnant, moving ahead at 0.5 per cent. According toa 2005 research report by the United Nations Food and Agriculture Organization, India'scoffee consumption has been chugging along at 2.2 per cent per annum.With consumption pegged at 70,000 tones, branded coffee accounts for 53 per cent,unbranded 40 per cent, with cafes constituting 7 per cent. Industry estimates peg the annualgrowth rate of the coffeehouse segment at a half percent clip.

Despite these figures, if coffee houses are extending their network, according to SunaliniMenon, chief executive of CoffeeLab, which provides evaluative services for coffeemanufacturers, it is because they provide more than just coffee."They are a venue to socialise, finalise business deals, conduct interviews, listen to music andread in," she says.According to Cafe Mocha's CEO, Dharmesh Karmorkar, call centres have been one of thegrowth triggers. "Before the advent of night-time work enterprises, a coffee house's customer

was limited to individuals who worked daytime hours. Now, in addition, we have an entiregroup of professionals who work a night-time shift."


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There is also the issue of small town individuals moving away from their families to largercities for career opportunities that were not present before."This individualistic culture promotes the need for a venue to socialise with others of theirage who share their interests," he adds.Barista's COO, Brotin Banerjee relies on the power of the youth and their increasingdisposable income."Several Indian students begin working at a very young age, sometimes right after highschool. They have the purchasing power," he says.That's why with a Rs 20-crore (Rs 200 million) outlay, Barista is hoping to be aninternational brand. Plans underway include 35-40 Baristas in Nepal, Malaysia, Indonesia,Turkey, Iran and Bahrain.Its strategy will centre around targeting college students in the age range of 16-20 to "catchthem young" and induce "lifetime loyalty". Barista also plans to start "platforms on the go" in partnership with petroleum companies to cater to consumers travelling between cities.Its current tally is 122 stores, which include Barista espresso bars, shop-in-shops and cornerstores.Also, from 230 stores, Cafe Coffee Day's senior general manager Sudipta Sengupta plans toadd an additional 270 stores in the next three years.

"We will incorporate health foods like herb breads, sunflower seeds, multigrain breads and bran sandwiches. We will also introduce a premium coffee and offer merchandise such asfilters, mugs, and message T-shirts," she says.In a bid to take coffee to the masses, the new outlets will be in towns, which have a population of one lakh and above.While Barista and Cafe Coffee day are targeting mass-based consumption, Cafe Mocha, withonly nine franchise outlets, is focusing on imported coffees and an upmarket clientele.

It wants to push its stores from nine to 65 in the next three years. There are plans to openfranchised stores in Indonesia, Singapore, Sri Lanka and two in the Middle East.In addition, the chain plans to invest Rs 3 crore (Rs 30 million) in human resourcedevelopment and Rs 8 crore (Rs 80 million) on the development of new menu items everyyear.Explains Karmorkar, "We're focusing primarily on knowledge building and management andthe expertise that our chefs and staff bring to the table."


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Clearly, despite coffee consumption stagnating, coffee houses are finding it lucrative to addvalue activities -- book clubs, film clubs, social activities, merchandise, food -- as the main plug. Drink to that!

2.3 LITERATURE REVIEW 3

2.3.1 An Indian sector on the upswing: coffee shops

By M. A. Winter The Coffee retailing sector in India is booming today, with several companies active in themarket. Some are local entities, some have come from abroad and have tied up with localcompanies, and some seem to prepare themselves for an entry sooner or later. The marketgrowth is expected to be 20 to 30% annually in the next couple of years. The first foreigncoffee retailer who arrived was Costa Coffee, a chain of coffee shops owned by leisure andhotel group Whitbread Plc from UK. Costa Coffee, together with the Devjani Group as thefirst franchisee, opened the first outlet at Delhis Connaught Place in 2005. Now, two years

later, Costa operates already a total of 34 stores. Besides Delhi, Costa is present in cities likeMumbai, Agra, Jaipur and Lucknow. The plan is to have 200 stores by the end of 2010, aspokesperson of Whitbread Plc told FoodIndustryIndia.com. Starbucks Corp from the US is

another well known coffee chain, a big player in many markets around the world. For India,there were plans to enter the market with a partner. Now it seems that these earlier plans have been modified. In July, the company has put on hold its earlier plans to enter India by the endof 2007, without giving a reason. Speculation was on that the government might not haveallowed the joint venture with an Indian partner based in Indonesia on behalf of the foreigndirect investment regulation for single-brand retailing. Now, a few days back, Starbucks hasagreed a multi-country deal with its North-American partner PepsiCo by which PepsiCo

would sell the Starbucks ready-to-drink beverages in international markets, including thosecountries that do not have Starbucks outlets, like India. Basically, the agreement providesStarbucks the option to bring at least a part of its product portfolio very quickly to Indianretail shelves. Almost in the same time when Starbucks was making and pushing its plans forIndia, Lavazza from Italy, in Italian eyes the mother country of all coffee drinkers, rushedahead and took over coffee chain Barista and Fresh & Honest for an amount of reportedly Rs480 crore from Chennai-based Sterling Infotech Group in May this year. Some media

reported that Amalgamated Bean Coffee Trading Ltd (ABCTL), which owns Indias biggestcoffee-cafe chain Cafe Coffee Day, was also interested to buy Barista, but there was no


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confirmation. Barista is a major player in the premium sector of the Indian sub-continent,with 150 cafs in Asia, of which 132 are in India alone. By far the biggest player in themarket already is Cafe Coffee Day, a coffee chain which is part of the Amalgamated Beancompany. Run by venture capitalist V. G. Siddhartha, Cafe Coffee Day operates 483 outletsat present, mainly in India, but also some in Pakistan and two recently opened in Vienna,Austria. They plan to have a total of over 2,000 outlets over the next four-and-half years,their CEO has said earlier. Cafe Coffee Day has raised equity capital from Sequoia Capital tofinance its rapid expansion. Media reported an amount of US$ 35 million, and an additionaltarget amount of US$ 50 million which would be currently sought. ABCTL is executing aninteresting business model, as it is involved in the coffee business right from growing, processing and selling in different forms and formats like export of green coffee, selling of packed coffee, and selling of hot coffee in various retail outlets and vending machines.


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OBJECTIVE

RESEARCH OBJECTIVE Customer Perception and Attitude towards retail coffeechains a study in Delhi, w.r.t Barista, CCD, Nescafe

SUB OBJECTIVES:1. Preference in choice of Coffee chain

2. Factor affecting the customer choice of coffee chains

3. Comparative analysis between different coffee chains

Identifying the most popular coffeehouse.


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RESEARCH METHODOLOGY

While making a study we very often look for what type of research methodology is to be used

in this type of study. For implementation of a proper research methodology we have to firstunderstand the meaning of research.Research is a scientific as well as systematic process, which includes defining and redefiningthe problem to develop hypothesis, to collect and define the information/data, to analysis theinformation and bring out the results.The first step in research after defining the research problem and objectives is data collection.The word data means any raw information, which is either quantitative or qualitative in

nature, which is of practical or theoretical use. The task of data collection begins after aresearch problem has been defined and research design chalked out. While deciding about themethod of data collection, the researcher should keep in mind that there are two types of data primary and secondary.

1. Primary data: - This is those, which are collected afresh and for the first Time, andthus happen to be original in character. There are many ways of data collection of primary data like questionnaire, observation method, interview method, throughschedules, pantry Reports, distributors audit, consumer panel etc.

2. Secondary data: - These are those data, which are not collected afresh and are usedearlier also and thus they cannot be considered as original in character. There aremany ways of data collection of secondary data like publications of the state andcentral govt., website, journals, companies reports, reports prepared by researchers,reports of various associations connected with business, Industries, banks etc. For this project secondary data was taken from companys reports and websites.

This project is a survey project. In this project first the secondary data will be collectedthrough websites, magazines and journals. Based on this information a questionnaire will bedesigned for the target respondents. The primary data collected through this fieldwork will beanalyzed and used to generate results.

Target respondent the target respondent are the people who have visited any of the

coffeehouses in Delhi.


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RESEARCH DESIGN

Type of research: Descriptive research

Sources of data: Primary Data & Secondary Data

Primary Data - Questionnaire

Secondary Data magazines, Websites, Journals

Data collection method: Survey Method

Survey instrument: Questionnaire

Sampling technique: Convenient sampling

Sample size: 50

Sample unit: People who visit coffee houses in Delhi

Area of survey: Delhi

FUTURE OF COFFEE HOUSES IN INDIA

The biggest players in India are CCD and Barista. Most of the coffee houses do theirBranding via the following attributes-

1. Experience

2. Customer service

3. Variety/ Variants of Coffee

4. Taste

5. Preparation - in terms of hot/cold


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CCD plans to set up 'highway cafes' and 'drive through cafes' to attract customers. Thesecafes would be set up at various petrol pumps and the company is seeking tie ups with allleading petroleum companies in this regard. This will increase their brand image and increaseof Point of Sales. Nescafe outlets in select cities are positioned on the lines of its Nescafe brand's `taste thatgets you going' theme. Caf Nescafes offer beverages priced as competitively as Rs 10.

SCOPE

1. With increase in FDI, we will see more global players in India. Gloria Jeans was also innews. Starbucks is a new entry.2. Other FMCG giants such as Hindustan Lever and Tata Coffee will sooner or later venture

into the coffee chain business

In this industry, the tangible differentiators are very few. Its only the intangible as mentioned

above creates a difference.Concepts like Sensory Branding by Martin Lindstorm work here as coffee chains can coverthe aspect of smell, sight, sound (music inside the store), taste and touch of the furnitureinside.


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CHAPTER-3

DATA ANALYSIS & RESULT

N MINIMUM MAXIMUM MEAN STD.DEVIATION

BARISTA

CCD

NESCAFE

VALID N

(LIST WISE)

50

50

50

50

1

1

1

3

3

3

1.9200

2.2800

1.8000

.77

.72

.88

Table 3.1

Coffee house visited the most

Chart No. 3.1

coffee house visited the most

barista

ccd

nescafe


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Descriptive Statistics

Table 3.2

Chart no. 3.2

Usually, People prefer drinking coffee precisely on social occasions and then becauseof their drinking habits.

N MINIMUM MAXIMUM MEAN

Release stress

Social occasions

Drinking habit

refreshment

50

50

50

50

1

1

1

1

4

4

4

4

2.4400

3.0200

3.6000

2.1000

why you drink coffee?

release stress

social occasions

drinking habit

refreshment


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Table 3.3

Chart No. 3.3

Most preferred place for drinking place for coffee is caf then food court followed by homeand then ciaos.


Home

Caf

Food Court

ciaos

50

50

50

50

1

1

1

1

4

4

4

4

2.4400

3.8200

3.2000

2.1000

Place

Home

caf

Food Court

caeos


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Variety ofcoffee

Taste ofcoffee

Quality ofcoffee

Price ofcoffee

Ambienceof outletCustomerservice

Location ofoutlet

Offers,discounts,coupons etc

Side ordermenu

Time forservice

Valid N (listwise )

50

50

50

50

50

50

50

50

50

50

50

2

3

3

1

2

1

1

1

1

1

1

4

4

4

4

4

4

4

4

4

4

3.3200

3.6600

3.6400

2.4400

3.1800

3.0200

2.6000

2.1000

2.4800

2.7800

Table 3.4


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Chart no. 3.4

While visiting a coffee house, taste of coffee is the most important factor for choosing thecoffee house, because it has the maximum mean of 3.66



B_variety

C_variety N_vareity

Valid N(listwise)

50

505050

2

21

4

44

3.2600

3.36002.2000

Table 3.5

FACTORS

Variety

Taste

Quality

Price


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Chart No. 3.5

Out of the variety of coffee offered by Barista, CCD and Nescafe, CCD has good varietythan others, which has a mean of 3.36



B_taste

C_taste

N_taste

Valid N

( list wise)

50

50

50

50

2

2

1

4

4

4

3.3000

3.3800

2.6400

Table 3.6

VAREITY

barista

CCD

nescafe


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Chart No. 3.6

The taste of coffee of CCD has a mean of 3.38, which means than taste of coffee offered by

CCD is better than other coffee houses.

.Descriptive statistics


B_quality

C_quality

N_qualityValid N

( list wise)

50

50

5050

2

2

1

4

4

4

3.3600

3.3000

2.4600

Table 3.7

TASTE

BARISTA

CCD

NESCAFE


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Chart No. 3.7

The table shows that the mean quality of coffee offered by Barista is more than the other 2

coffee houses; this means that Barista offers the best quality in coffee


Table 3.8

QUALITY

BARISTA

CCD

NESCAFE


B_price

C_price

N_price

Valid N

( list wise)

50

50

50

50

1

2

2

4

4

4

2.1800

2.7400

3.1400


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Chart No. 3.8

The price offered by Nescafe is the most economic, which can be seen by the mean which ismore than the other two coffee houses.



B_ambeince

C_ambeince

N_ambeince

Valid N

( list wise)

50

50

50

50

2

2

1

4

4

4

2.9000

3.2200

2.4800

Table 3.9

PRICE

BARISTA

CCD

NESCAFE


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Chart No. 3.9

The ambience of CCD is better than the other two coffee houses. The mean of ambience is3.22

Descriptive statistics


B_customer

C_customer

N_customer

Valid N

( list wise)

50

50

50

50

1

2

1

4

4

4

2.7000

2.9200

2.2800

Table 3.10

AMBEINCE

BARISTA

CCD

NESCAFE


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Chart No. 3.10

The customer service offered by CCD is better than the customer service offered by other twocoffee houses.



B_location

C_location

N_location

Valid N

( list wise)

50

50

50

50

1

1

1

4

4

4

2.5200

3.9200

2.5400

Table 3.11

CUSTOMER SERVICE

BARISTA

CCD

NESCAFE


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Chart No. 3.12

The discounts, offers and coupons offered by Nescafe is better in comparison to the other twocoffee houses.



B_menu

C_menu

N_menuValid N

( list wise)

50

50

5050

1

1

1

4

4

4

2.4600

2.6400

2.8200

Table 3.13

OFFERS

BARISTA

CCD

NESCAFE


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Chart No. 3.13

The side menu of Nescafe is better than the other two coffee houses. It includes Magginoodle which is the hot favourite in kids and youngsters.



B_time

C_time

N_time

Valid N

( list wise)

50

50

50

50

1

1

1

4

4

4

2.7600

2.7400

2.6000

Table 3.14

MENU

BARISTA

CCD

NESCAFE


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Chart No. 3.14

Barista is better in time taken to serve the consumer. It has a mean of 2.76 which is higherthan the mean of other two coffee houses.



STD.

DEVIATION

Exe_b

Exe_c

Exe_n

Valid N

( list wise)

50

50

50

50

2

2

1

4

4

4

3.1800

3.4600

2.7000

.66055

.54248

.76265

TIME FOR SERVING

BARISTA

CCD

NESCAFE


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Table 3.15

Chart No. 3.15

The experience was enjoyed most in the settings of CCD, followed by Barista and Nescaferespectively. The mean is 3.46


N MINIMUM MAXIMUM SUM MEAN

STD.

DEVIATION

BARISTA

CCD

NESCAFE

Valid N

( list wise)

50

50

50

50

1

1

1

3

3

3

96

114

90

1.9200

2.2800

1.8000

.77828

.72955

.88063

Table 3.16

EXPEREINCE

BARISTA

CCD

NESCAFE


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Chart No. 3.16

Barista 96CCD - 114Nescafe 90

The results show that CCD is ranked the first, followed by Barista as second, and Nescafe is

third in ranking.


N MINIMUM MAXIMUM MEAN STD.

DEVIATION

Own instinct

Family

Friends

Work Group

Valid N

( list wise)

50

50

50

50

50

1

2

2

1

4

4

4

4

3.2000

3.0800

3.4000

2.8600

.75593

.72393

.57143

.85738

RANKING

BARISTA

CCD

NESCAFE


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Table 3.17

Chart No. 3.17

The decision making for visiting a coffee house is highly influenced by peer group or friends.


Table 3.18

DECISION MAKING

INSTINCT

FAMILY

FRIENDS

W. GROUP

FREQUENCY % VALID

PERCENT

CUMULATIVE

PERCENT

refreshment

get together

dating

work

total

19

19

5

7

50

38.0

38.0

10.0

14.0

100.0

38.0

38.0

10.0

14.0

100.0

38.0

76.0

86.0

100.0


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Chart No. 3.18

The reason to visit a coffee house is usually for refreshment or get together with friends. 19respondents voted for both refreshments and get together with friends.

REASON TO VISIT

REFRESH

GATHERING

DATING

WORK


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CONCLUSION AND RECCOMENDATIONS

Cafe Coffee Day : - This has been positioned for younger generations usually college goersand young people. With outlets strategically positioned near colleges, software companies

and places where they can target customers. On analysis it can be seen that majority of thecustomers are of 18-30 age group. People prefer coffee day location for treats.

Barista Coffee : - Positioned for Executive class of customers who prefer premium taste butnot too high prices. Barista coffee customers are particular about taste and a peacefulatmosphere. Usually these outlets have dim lighting and exclusive treatment.

Nescafe: - Positioned for youngsters who like to have a sip of coffee and have a chat withtheir friends at a really low price. The main emphasis is on the quality of coffee and not onthe ambience. They mainly target the mass population. With the side menu as tempting asMaggi Noodles, they are a hot favourite among young couples.


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ANNEXURE 1

QUESTIONNAIRE

PERSONAL INFORMATION

Age: less than 20 _________21 30 _________31 45 _________46 and above _________

Household Income: less than 2 lakh _________2-6 lakh _________6-10 lakh _________10 lakh and above _________

Gender: Male _________Female _________

Please tick the relevant answer

Q1. For what reasons would you drink coffee? (

i. Release Stressii. Refreshingiii. Social Occasionsiv. Drinking Habitv. Other (Please Specify)

Q 2. Where do you drink coffee most often?

i. Homeii. Caf

iii. Coffee shopiv. Food court

v.

Other (please specify)

Q3. How frequently do you visit a coffee house?

i. Every day ______________

ii. Alternate day ______________

iii. Weekly ______________

iv. Fortnightly ______________

Q4. Out of the 3 coffee houses, which one do you visit the most?


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i. Barista _______________

ii. CCD _______________

iii. Nescafe _______________

Q5. How important are the following factors while visiting the coffee houses?

Factors Very

Important Important

Less

Important

Not

Important

Variety of coffee

Taste of coffee

Quality of coffee

Price

Ambiance

Customer Service

Location

Offer/disc./coupons

Side order menu

Time for serving

Q6. Rate the following coffee houses on the following factors on a scale of 1 4 (1-poor, 2-fair, 3-good, 4-excellent)

Factors Barista CCD Nescafe

Variety of coffee


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Taste of coffee

Quality of coffee

Price

Ambiance

Customer Service

Location

Offer/disc./coupons

Side order menu

Time for serving

Q7. Rate your experience with the following coffee-chains on the following scale

Very

satisfied

Satisfied Less

satisfied

Not satisfeid

Barista

CCD

Nescafe

Q8. Rank the following coffee chains in order of preference. 3 being most preferred, 1 beingless preferredi. Barista _______________

ii. CCD _______________

iii. Nescafe _______________

Q9. How important are the following in your decision making for visiting a coffee house


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Q10. Your reason to visit a coffee house is-

i. Refreshment __________

ii. Get together with friends __________

iii. Date __________

iv. Work __________

Factors Very

Important Important

Less

Important

Not

Important

Your own instinctFamily

Friends

Work Group


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market research on retail coffee outlets

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