Cafe Coffee Day, Indian’s biggest player in the category has been there for the past 16 years before they finally decided to launch their first TVC. Is it just a co incident or an example of Newton’s ‘every action has a reaction’. Starbucks, World leader in the category has marked its entry in November last year and CCD stepped up their marketing activities in December. The campaign followed with a burst of print media ads in nine key cities across the country.
The concept of ‘Sit-down-ism’ conceptualized by Creativeland Asia, CCD’s communication partner is also handling other campaigns for the coffee chain. The TVC gives a purpose for hanging out and a justice to their punchline ‘a lot can happen over coffee’. The commercial focuses on the youth (16-25) who believes that standing up often doesn’t really yield results. They end up in traffic jams and protests. Whereas sitting down at peace with a cup of coffee can yield solutions to most of the problems. The TVC very cleverly connects to the college going youth and their attitude.
First ever TVC is a reflection of the light-hearted fun one finds at each of its café. It mirrors the youth habit of sitting down over a cup of coffee for wholesome conversations, from making plans with friends to shared excitement over a celebration or simply discussing current affairs and resolving issues.
Behind the Scenes
In the hindsight of this TVC the chain has tried to differentiate its purpose and target group from its other counterparts including Starbucks. Youth goes with cash crunch and you can find youngsters speaking “I am saving money, Papa’. The intention is also to bring in to notice the fact that they offer a hangout zone at a minimal cost. Starbucks which has opened at Horniman Circle, South Mumbai is clearly targeting the corporate clients and working professionals. Even the other two destinations where Starbucks has opened are Taj Mahal Palace hotel and the Oberoi hotel across town. CCD on the other hand is present in the Malls, colleges and travel places attributing to its preferred group which are youth.
CCD is also teaming up with oil marketing companies to set up the outlets near their filling stations. The company currently has 48 highway outlets and plans to double it in the next two years. Overall, the coffee bar retailer intends to expand its network from 1270 outlets at present to 2,000 by 2014.
The marketing done by CCD to lure the youngsters has also made them tie up with a non-profit education institution, FLAME (Foundation for Liberal and Management Education) to introduce a ‘Scholar Hunt' programme, and disburses scholarships worth Rs 5 crore to students seeking graduate and post-graduate programmes in different fields.
CCD used to invest 2 per cent of its top line on marketing, with a marketing budget of Rs 8-10 crore. Of this, so far, nearly 90 per cent was spent on in-store marketing, with virtual marketing accounting for the remaining 10 per cent. This has become 70:30 immediately after the launch of Starbucks. To mark their presence in the digital space has been their plan to leave a statement, differentiating their domain and that of its other counterparts.
As per a report from consultancy Technopak, the market could double in the next five years to more than $500 million. Starbucks have ventured into the country looking at such growth potential and despite having a stiff competition they have managed to become the talk of the town. They have spotted their customers moving into five star hotels and high end streets and will be planning to trace and follow them. CCD on the other hand knows its strength and the business is coming from the youngsters. Pricing, location and now the TVC clearly isolates the domain of the Indian leader and the world leader of coffee chains. Former enjoys the space of youngsters while the latter plans to cater to the corporates