INTRODUCTION MOCHA

A caff mocha or caf mocha is a variant of a caff latte, inspired by the Turin Coffee beverage Bicerin. Like a caff latte, it is based on espresso and hot milk, but with added chocolate, typically in the form of sweet cocoa powder, although many varieties use chocolate syrup. Mochas can contain dark or milk chocolate. Caf mocha, in its most basic formulation, can also be referred to as hot chocolate with (e.g. a shot of) espresso added. Like cappuccino, caf mochas typically contain the wellknown milk froth on top, although, as is common with hot chocolate, they are sometimes served with whipped cream instead. They are usually topped with a dusting of either cinnamon or cocoa powder and marshmallows may also be added on top for flavor and decoration. A variant is white caf mocha, made with white chocolate instead of milk or dark. There are also variants of the drink that mix the two syrups; this mixture is referred to by several names, including black and white mocha, tan mocha, marble mocha, tuxedo mocha and zebra. Caf mocha takes its name from the Red Sea coastal town of Mocha, Yemen, which as far back as the fifteenth century was a dominant exporter of coffee, especially to areas around the Arabian Peninsula.

INTRODUCTION ON COFFEE CAF DAY

The Coffee Caf Industry

The Coffee Caf industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafs, hotel cafs and retail caf chains Individual Cafs: The main bulk of revenue is earned by small, individual cafs, run mostly by families and friends. It is a relatively unorganized sector. There are millions of such cafs around the world, and they provide customers with a homely, casual experience. The bulk of these cafs are mainly in Europe, where every little town or village has local cafs, where people gather together for a conversation over coffee, or just to be alone with their thoughts. These cafs have been the birthplace and sanctuary for various creative minds, revolutionaries and thinkers of our time. The most recent example Is the author J.K. Rowling, who has written most of the Harry Potter series of books, sitting at her local caf. These cafs set themselves apart from retail chain cafs and hotel cafs because they provide customers with a homely, classic appeal, which cannot be emulated.

Growth of Caf Industry in India

Hot beverages have always been a part of the tradition of India, especially South India. Coffee took the first seat in South India when the traditional Brahmin classes brought down the beverage from the ruling British around the 1930s. During the early years the drink was confined only to traditional rich Brahmin families who served filter coffee in a 'davra- tumbler'. Coffee is no more confined to the rich Brahmin class now, though the tradition of serving filter coffee in the 'davra- tumbler' continues to this day. In order to spread the drink, coffee houses emerged at various places in the country, which also served as the opposite places for lawyers and the educated class to hold discussions ranging from politics to cinema. It is also believed that many scripts and ideas for films evolved here. One of the oldest coffee houses in South India is the

Raayars mess, Chennai, which serves first class filter coffee even today. The mess was established in the 1940s and continues the tradition of coffee but supplements it with tiffin also. The vintage location of the mess attracts huge crowds even today early in the mornings, Coffee however was not the only item on the menu. These places also served food and other drinks to their customers. The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafs, to all sections of society. The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee caf owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Caf Coffee Day have opened up around the country. The concept of a caf today is not merely about selling coffee, but about developing a national brand. Retail cafs now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally. These cafs form the main focus of this project.

INTRODUCTION ON BARISTA
Corporate Profile Background, Market Entry & Growth: Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. More significantly, they believe they have been quick to spot a latent need waiting to be trapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product mix and carefully designed cafs. In other words, customers seek an experiential lifestyle brand. As of today, Barista exists in over 22 cities, and operates over 140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates, Barista is currently experiencing phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities in Asia, making it highly competitive international brand. Product Sources: Barista sources its coffee beans from around the world, but a major supplier is TATA Coffee, part of the TATA Group that owns a large stake- holding in Barista. These coffee beans are then sent to Venice, Italy where they are roasted into a blend exclusively for Barista. The food and desserts at Barista is exclusively catered to by the Taj, who ensures a high standard of quality with all its products. Barista also sells merchandise through its store, all of which is imported. The merchandise accounts for nearly 1/6th of Baristas overall sales. Quality Sources: Barista has a check on the quality of its products every 14 days. Barista also incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its distribution, quality control measures are adopted there to avoid any poor quality products being distributed. Pricing: Barista has a Skim Pricing Policy. They began with a higher price, and skimmed the cream for the market. With the sudden spurt of growth in number of outlets, came the

benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to different segments of their target market. The main factors that affect their pricing are their cost of goods sold. The costs are quite high because imports a majority of its products and product- sources. Process: The order and delivery process at Barista is based on self- service, where a customer goes up to the counter to place his order, and goes back to the counter to pick his delivery once it is prepared. Positioning: Consumer Profile: According to research, over 65% of Baristas customers are in the 15- 30 age- group. The majority of these are students and young urban professionals. Brand Image: Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafs, where people would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place where the world meets, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time. Products: Baristas product mix constitutes a wide range of products that appeal primarily to traditional coffee lovers. Their products themselves are traditional products with traditional names. Food items like croissant, pastas, and sandwiches are complimentary to their coffee, and project a very classic image of Barista. Their merchandising also consists of primarily coffee related products like coffee beans, coffee machines, etc. Prices: Considering that Barista is trying to target a market whose age range is between 18 and 60 years, a pricing policy appealing to this segment is difficult. Extremely low prices act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But since

Baristas current consumer profile is quite young, their prices are mostly inexpensive, and at par with their competitors. People: The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-back feeling of the caf. Physical Evidence: a) Logo, Colors, Images: Barista, since the beginning has looked to use colors in its caf interiors, logos and images; to project a warm, earth glow, synonymous with coffee. Barista uses shades of Orange & Brown to good effect to promote its laid- back atmosphere. The logo is a combination of Brown, Orange and Light Yellow; with the word Barista written in an upward curve, and the word Coffee underneath. A simple logo that perfectly expresses Baristas brand image: A traditional caf for coffee lovers. b) Dcor and Architecture: Baristas internal dcor and architecture expresses the simplicity you would normally associate with traditional cafs. The furniture is made of light shades of wood, and there are comfortable sofas in bigger cafs. The walls are shades of orange, with various photographs of the love for coffee spread around each outlet. c) Literature:

The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular note is their magazine, which is privately circulated in the cafs. The magazine encourages customers write, draw, make etc anything creative; and this is then published in the magazine. The magazine not only provides an avenue for advertising, but also an opportunity for Barista to express its brand image. Place: Barista looks to cater to their target market with strategically located outlets. Their outlets are generally located at High Street/ Family Entertainment Centers. Considering their generic appeal, there are Barista outlets in and around Malls,

Cinemas, Colleges, and Offices etc. this endorses their brand image of a caf that appeals to coffee lovers of all ages. Promotions: Barista currently carries out mass promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations. Barista also takes part in various sales promotion activities to help increase sales at their outlets. a) Sponsorships:

Barista sponsors various events and festivals, which provides them valuable promotion directed at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in cash also. b) Sales Promotion: Barista uses a special Barista Coffee Card for its sales promotion activities. The Barista Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It is available to all Barista coffee regulars. No membership fees, no references required. Fill out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every time you purchase a beverage. Simply present the card to the cashier when you place your order at any of their outlets. Once you have collected seven stamps, you can hand over the card to receive your complimentary hot beverage. Barista hopes this card can help drive sales growth, and increase customer retention. Distribution: Distribution of outlets Every Barista outlet is owned by the company, and not franchised out to anyone. Barista can thus control and make quick changes to its entire retail chain. Barista currently operates in over 120 outlets all over the country, and at their current rate, they are opening a new outlet approximately every 10 days. They have a market presence in over 20 cities. Mumbai alone has over 30 outlets, and the number of outlets in the city is increasing at a phenomenal pace. Barista has a thumb rule for selecting cities and locations for the distribution of outlets.

Location: this is a prime factor in determining the success of a retail chain. However, Barista Coffee has adopted a top down approach, wherein they first identify the cities and then decide on precise locations within its limits. Distribution of Stock The distribution of stock at Barista begins from the coffee beans being sent abroad for roasting. The roasting takes place in Venice, and the beans are then supplied to the main warehouse in Delhi. Stock is then distributed to the various Regional Warehouses, and then to the local Warehouses. The outlets get their stock from the Local Warehouses. Barista uses a Re-Order Level system for the distribution of their stock. Barista out sources its transportation needs from external organizations, and currently uses trucks as the preferred means of distribution.

OBJECTIVE OF THE STUDY

The objective of the thesis is Study of various cafeterias in Ludhiana, identify areas of excellence and areas needing improvement; and provide suggestions for such improvement. The aim of this Thesis is to successfully compare two prominent service sector companies on a common platform, analyze their working and performance, and highlight what they are doing well, while providing suggestions and recommendations for improvement.

1. 2. 3.

To know the preference level for cafeterias among population of Ludhiana. To know the frequency of consumers visit to the coffee shop. To know the spending habits of consumers.

SCOPE
This project has a quite wide scope because through this we come to know about the preference of people between Caf Coffee Day, Barista and Mocha. Through my project one can compare the satisfaction level of people from Barista, Caf Coffee Day and Mocha.

LIMITATION

1. Due to resources and time constraints the study was limited to Ludhiana city only. 2. There was a limitation on the part of respondents as they sometimes shirked to give the related information due to their busy schedule. 3. Being an opinion survey, the personal biases of the respondents might have entered in their responses. 4. It cannot be accepted as a piece of excellence and is limited to the knowledge and experience of people.

RESEARCH METHODOLOGY
For the purpose of this study, I prepared research tools, various questionnaire, to find out the relevant primary data pertaining to the functioning and working of various cafeterias Barista, Caf Coffee Day and Mocha.

The data was collected based on information provided by: 1. 2. The management of the organization. Customers visiting Barista, Caf Coffee Day and Mocha outlets.

Besides the primary data collected with the help of the questionnaire, I have also collected the relevant secondary data from various sources like magazines, books and Internet and newspapers.

Based on the relevant primary and secondary data, a comparative analysis has been done so as to find out the areas of excellence and areas of improvement of both organizations.

Selection of Population
Due to time and resources constraint the study has been conducted in the city of Ludhiana. The population for this study comprises of people belonging to the city of Ludhiana which are categorized as under: a) b) c) d) e) Students Businessman Working Professional House wives

Selection of Sample A sample of 50 respondents belonging to different occupation background was selected. Stratified sampling technique was used for the selection.

The following strata of respondents were made on the basis of their occupation. a) b) c) d) e) Student Housewives Working Professionals Businessman : : : : : 10 8 10 10 12

Construction of Research Instrument The important factors to be studied were entitled by the researcher, after examining the related researches. After having the backward knowledge, a questionnaire was developed to obtain responses relevant to the objectives of research. While designing the

questionnaire every attempt was made to make it precise, so that the process of filling up the responses does not consume too much time.

The designed questionnaire was constructed the questionnaire consist of dichotomous questions i.e. yes or no type, multiple choice questions.

Some of the questions were in the form of check list. It was basically an opinion survey in which the reaction of the respondents in connection with various aspects of the study were recorded. respondents. So attitude measurement was also done by asking the respondent as which is better and on what basis they go for the particular ready to eat food brand. But an opinion research is not enough to know the attitude of

Collection of Data The questionnaire method was used for collecting the data related to the study. The objectives of the research were explained to the respondents before getting the questionnaire filled. In certain cases, the questionnaire was handled over the respondents for them to fill it up.

Analysis of Data Attitude have been checked on different Parameters like awareness about Barista, Caf Coffee Day and Mocha. The various reasons why the people prefer "Barista, Caf Coffee Day and Mocha". Awareness about the preservatives being used in Barista, Caf Coffee Day and Mocha. The various age groups which prefer going to Barista, Caf Coffee Day and Mocha. Item wise rating scales have also been use conclusion were drawn mainly on the basis of percentage.

NON-PROBABILITY SAMPLING Non-Probability sampling methods are those which do not provide every item in the universe with a known chance of being included in the sample. The selection process is at least particularly subjective. The following are some of the methods of Non-Probability sampling:

Chi-square Test
The chi-square test is one of the simplest and most widely used non-parametric tests in statistical work. The 2 are the Greet letter chi the chi-square (2) test was first used by Karl Pearson in the year 1990. The quantity chi-square describes the magnitude of the discrepancy between theory and observation. It is defined as: Chi-Square = (O-E)2 / E Where O = Observed frequency E = Expected frequency To determine the value of chi-square, the steps required are: 1. Calculated the expected frequencies Total no. of Respondents E = --------------------------------------Different types of respondents 2. Take the difference between observed and expected frequencies and obtain the squares of these differences i.e., (O-E) 2 3. Divide the values of (O-E)2 with respective expected frequency and obtain the total i.e., (O-E) 2 / E Degree of Freedom is (n-1).

FINDING AND ANALYSIS

Q.1

What Coffee shop do you usually go to?

Coffee Shop Barista Caf-coffee Day Mocha Others

No. of Respondents 20 15 10 5

Percentage of Respondents 40% 30% 20% 10%

Fig.1: Preference for the coffee Shop

10% 20% 40% Barista Caf-coffee Day Mocha 30% Others

Analysis: The graph 1 shows which coffee shop the respondents usually preferred to visit. Out of the 50 respondents, 40% respondents preferred Barista, 30% respondents preferred caf coffee day and 20% preferred Mocha whereas only 10% of the respondents preferred others.

Interpretation: Most of the people prefer going to Barista.

CHI-SQUARE TEST-1 TO TEST THE RESPONDENTS RESPONSE PREFERENCE FOR THE COFFEE SHOP Coffee Shop Barista Caf-coffee Day Mocha Others No. of Respondents 20 15 10 5 Note: 2= 1.84, for =3; Significant at 0.05 level Null Hypothesis Ho: There is no difference between number of respondents preference for the coffee shop. O E O-E (O-E)2 (O-E)2/E Barista Caf-coffee Day Mocha Others 20 15 10 5 12.5 12.5 12.5 12.5 7.5 2.5 -2.5 -7.5 56.25 6.25 6.25 56.25 0.42 0.5 0.5 0.42 1.84 Percentage of Respondents 40% 30% 20% 10%

Where, O is Observed value and, E is expected value (O-E)2/E = 1.84 n-1 = 4-1= 3 Degree of freedom n = number of variables The significance level = 0.05 So, 7.815 is Tabulated Calculated < Tabulated There, Null Hypothesis is selected. i.e. Most of the people prefer going to Barista, this statement is selected.

Q.2

How often do you visit a coffee shop?

Frequency of visit Almost Daily 2-3 times a week 2-3 times a month Not often

No. of Respondents 5 25 15 5

Percentage of Respondents 10% 50% 30% 10%

Fig. 2: Frequency of visit to the coffee shop

50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Percentage

30%

10%

10%

Almost Daily 2-3 times a 2-3 times a week month Frequency of Visit

Not often

Analysis: Out of the 50 respondents, 10% visit a coffee shop almost daily, 50% visit 2-3 times a week, 30% visit a coffee shop 2-3 times a month where as 10% are those who visit a coffee shop not so often.

Interpretation: Through the survey I conducted, I realized that 50% of the respondents visit a coffee shop 2-3 times a week.

CHI-SQUARE TEST-2 TO TEST THE RESPONDENTS RESPONSE FREQUENCY OF VISIT TO THE COFFEE SHOP Frequency of visit No. of Respondents Percentage of Respondents Almost Daily 2-3 times a week 2-3 times a month Not often 5 25 15 5 Note: 2= 18.25, for =3; Significant at 0.05 level Null Hypothesis Ho: More number of the respondents frequency of visit to the coffee shop. H1: 50% of the respondents visit a coffee shop 2-3 time a week. O Almost Daily 2-3 times a week 2-3 times a month Not often 5 25 15 5 E 12.5 12.5 12.5 12.5 O-E -7.5 12.5 2.5 -7.5 (O-E)2 56.25 156.25 12.5 56.25 (O-E)2/E 4.5 12.5 1 4.5 18.45 10% 50% 30% 10%

Where, O is Observed value and, E is expected value (O-E)2/E = 18.45 n-1 = 4-1= 3 Degree of freedom n = number of variables The significance level = 0.05 So, 7.815 is Tabulated Calculated > Tabulated There, Null Hypothesis is rejected. i.e. 50% of the respondents visit a coffee shop 2-3 times a week, this statement is rejected.

Q.3

How much money do you usually spend at a coffee shop? Spending habits 150-200 200-250. 250-300 Above 300 No. of Respondents 0 25 20 5 %age of Respondents 0% 50% 40% 10%

Fig.3: Spending habits of the people

0% 10% 50% 40% 150-200 200-250. 250-300 Above 300

Analysis: Out of the 50 respondents; 50% of the respondents spend between 200-250Rs, 40% spend between 250-300 Rs., 10% of the respondents spend above 300 Rs. But none of them spend between 150-200 Rs.

Interpretation: Most of the respondents spend between 200-250 Rs. at a coffee shop.

CHI-SQUARE TEST-3 TO TEST THE RESPONDENTS RESPONSE OF SPENDING HABITS OF THE PEOPLE Spending habits No. of %age of Respondents Respondents 150-200 0 0% 200-250. 250-300 Above 300 25 20 5 Note: 2= 34, for =3; Significant at 0.05 level 50% 40% 10%

Null Hypothesis Ho: More number of the respondents spending habits of the people. O 150-200 200-250. 250-300 Above 300 0 25 20 5 E 12.5 12.5 12.5 12.5 O-E -12.5 12.5 7.5 -7.5 (O-E)2 156.25 156.25 56.25 56.25 (O-E)2/E 12.5 12.5 4.5 4.5 34

Where, O is Observed value and, E is expected value (O-E)2/E = 34 n-1 = 4-1= 3 Degree of freedom n = number of variables The significance level = 0.05 So, 7.815 is Tabulated Calculated > Tabulated There, Null Hypothesis is rejected. i.e. most of the respondents spend between 200-250 Rs. at a coffee shop, this statement is rejected.

Q.4

How much time do you usually spend at a coffee shop?

Length of visits Less than hr. - 1 hr. 1-2 hrs. Over 2 hrs. No. of Respondents 5 15 25 5 Fig.4: Time usually spent at a coffee shop %age of Respondents 10% 30% 50% 10%

50% 40% Percentage 30% 20% 10% 0% Less than hr. - 1 hr. 1-2 hrs. Over 2 hrs.

Length of visit

Analysis: Out of the 50 respondents, 10% of the respondents spend less than hr at a coffee shop, 30% of the respondents spend between -1 hr. at a coffee shop, 50% of the respondents spend between 1-2 hrs. at a coffee shop. Whereas another 10% of the respondents spend over 2 hrs. at a coffee shop.

Interpretation: Most of the respondents spend between 1-2 hrs. at a coffee shop.

Q.5

How many people do you usually go with? Average group size Alone With 1 person 2-4 people More than 5 people No. of Respondents 5 15 10 20 %age of Respondents 10% 30% 20% 40%

Fig.5: Average group size

10% 40% 30% Alone With 1 person 2-4 people 20% More than 5 people

Analysis: Out of 50 respondents, 10% go alone to a coffee shop, 30% of respondents visit caf with 1 person atleast, 20% of the respondents visit caf in groups of 2-4 people. The remaining 40% visit caf in a group of more than 5 people.

Interpretation: Most of the respondents visit caf in a group of more than 5 people.

Q.6

What is the single most important factor for you to choose a coffee shop? Deciding factor No. of Respondents 15 5 10 20 %age of Respondents 30% 10% 20% 40%

Taste of coffee/ food People/ service Value for money Ambience/ Experience

Fig.6: Most important factor for choosing of coffee shop.

40% Ambience/ Experience

Deciding factor

Value for money 10%

20%

People/ service Taste of coffee/ food 0% 10%

30% 20% Percentage 30% 40%

Analysis: Out of 50 respondents, 40% of respondents selected ambience/experience as the most important factor that contributed to their choice of coffee caf, whereas as 20% of the respondents selected value for money as the most important factor, 10% of the respondents selected people/service whereas 30% of the respondents selected taste of coffee/ food as the most important factor to choose a coffee caf.

Interpretation: Majority of the respondents selected ambience/experience as the most important factor to choose a coffee shop.

Q.7.

How much are you satisfied with taste and quality of products available at the following cafes? Taste and quality of products Barista Caf Coffee Day Mocha No. of Respondents 15 25 10 %age of Respondents 30% 50% 20%

Fig.7 (I): Preference of caf for taste and quality of products.

20%

30% Barista Caf Coffee Day

50%

Mocha

Analysis: Out of the 50 respondents, 30% respondents choosed the taste and quality of products available at Barista, 50% respondents choosed Caf Coffee Day and 20% of the respondents preferred the taste and quality of products available at Mocha.

Interpretation: The majority of the respondents preferred the taste and quality of products available at Caf Coffee Day.

Q.8.

At what level are you satisfied with the prices of the following coffee caf. Prices Barista Caf Coffee Day Mocha No. of Respondents 15 25 10 %age of Respondents 30% 50% 20%

Fig.7 (II): Satisfaction with the prices

20%

30% Barista Caf Coffee Day

50%

Mocha

Analysis: Out of the 50 respondents, 50% respondents are satisfied with the prices of caf coffee day, 30% of the respondents are satisfied with the prices of Barista where as only 20% of the respondents are satisfied with the prices of Mocha.

Interpretation: Majority of the respondents are satisfied with prices of caf coffee day.

Q.9.

How much are you satisfied with the delivery of products at the following coffee cafes?

Delivery of Products Barista Caf Coffee Day Mocha

No. of Respondents 25 15 10

%age of Respondents 50% 30% 20%

Fig.7 (III): Delivery of Products

20% 50% 30%

Barista Caf Coffee Day Mocha

Analysis: Out of the 50 respondents, 50% respondents prefer Barista for delivery of products, 30% of the respondents prefer the Caf Coffee Day and 20% of the respondents prefer the delivery of products of Mocha.

Interpretation: Through the survey, I conducted, I realized that majority of the respondents prefer Barista for delivery of products.

Q.10. How much are you satisfied with the staff of the coffee caf? Staff Barista Caf Coffee Day Mocha No. of Respondents 20 15 15 %age of Respondents 40% 30% 30%

Fig.7 (IV): Satisfaction with staff

30%

40% Barista Caf Coffee Day 30% Mocha

Analysis: Out of the 50 respondents, 40% of the respondents are satisfied with the staff of Barista and 30% of the respondents are satisfied with the staff of caf coffee day and only 30% of the respondents are satisfied with the staff of Mocha.

Interpretation: Most of the respondents are satisfied with the staff available at Barista.

CONCLUSION
Most of the people prefer going to Barista. Through the survey I conducted, I realized that 50% of the respondents visit a coffee shop 2-3 times a week. Most of the respondents spend between 25-75 Rs. at a coffee shop. Most of the respondents spend between 1-2 hrs. at a coffee shop. Most of the respondents visit caf in a group of more than 5 people. Majority of the respondents selected ambience/experience as the most important factor to choose a coffee shop. The majority of the respondents preferred the taste and quality of products available at Caf Coffee Day. Majority of the respondents are satisfied with prices of caf coffee day. Through the survey, I conducted, I realized that majority of the respondents prefer Barista for delivery of products. Most of the respondents are satisfied with the staff available at Barista Most of the respondents preferred the ambience of Barista. Majority of the respondents preferred the products available at Caf Coffee Day. Most of the respondents believed that they are getting value for money from Caf Coffee Day. Through the survey, I conducted, I realized, most of the respondents were satisfied with the overall service of Barista.

RECOMMENDATION & SUGGESTIONS Barista

Barista has an extremely strong brand image, but they need to work hard on improving their customer perception of being and expensive brand. Barista and Caf Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand. Thats why my first recommendation for Barista is, to carry out a promotion campaign to ensure that their target market is well aware of their current low prices. This would help change customer perception and turn Barista into an affordable brand. Another backlash of having such a strong traditional caf brand image is that customers have very high expectations of the taste & quality of products. Barista needs to work hard at this aspect, especially for coffee and eatables products. My second recommendation is for Barista to look at its coffee beans suppliers and coffee brewing process to ensure that it is the best it can be. o This is especially important considering the international expansion Barista is undertaking. Barista should also look at the Taj, their national suppliers for eatables and desserts, and either improve the taste & quality of eatable, or look at another supplier- because as of now, they are not living up to expectations, and losing customers to Caf Coffee Day. o On a smaller note: the Barista delivery process should change, so that a caf attendant delivers the coffee to the table. This may seem insignificant, but it can go a long way in improving customer satisfaction.

Caf Coffee Day

Caf Coffee Day has done extremely well so far to project itself as an affordable youth- oriented brand. But there are still certain areas where their brand needs to be much stronger.

With regard to the physical evidence associated with the brand, Caf Coffee Day needs to do a lot of work if they hope to catch up with Barista. My first recommendation for Caf Coffee Day is to clean up the dcor at every outlet, wherever unnecessary advertising is taking place.

Although it might be an important source of revenue, long-term customer perception of the brand isnt very positive. Caf Coffee Day would do better to provide promotional space for its partners with the use of clever collaborations, and not printed advertisements and posters everywhere.

My second recommendation is that Caf Coffee Day looks at its current recruitment, selection and most importantly, its current training policies. Customers are not happy with the behavior and service of the staff, and Caf Coffee Day is lagging far behind Barista is this aspect.

BIBLIOGRAPHY
1. Kothari,C.R., Research Methodology ,WISHWA PRAKASHAN Publishing, Printed in India,Bangalore, Year 1998. 2. Kotler,Philip, Marketing Management,Ninth Edition , Prentice Hall, Printed in India, Year 1999. 3. 4. 5. www.cafecoffeeday.com - Search engines Case Study www.barista.co.in- Search engines Case Study www.google.com- Search engines

ANNEXURE
Dear Respondents Kindly help me in completing my survey related to the Topic "Growing Trend of Cafeterias in Ludhiana". Name Address Age Gender : Marital : Occupation Q.1 : : : Male Married : ________________________________________________ ________________________________________________ ________________________________________________

Female Unmarried

________________________________________________

What Coffee Shop do you usually go to?

Barista Mocha
Q.2

Caf Coffee Day Others 2-3 times a week Not often 200-250 Rupees Above 300 Rupees -1 hours Over 2 hours With 1 person More than 4 people People/ Service Ambience/ Experience

How often do you visit a Coffee Shop?

Almost Daily 2-3 times a month

Q.3

How much money do you usually spend at a Coffee Shop?

150-200 Rupees 250-300

Q.4

How much time do you usually spend at a Coffee Shop?

Less than hour 1-2 hours

Q.5

How many people do you usually go with?

Alone 2-4 people

Q.6

What is the single most important factor for you to choose a Coffee Shop?

Taste of coffee/ food Value for money

Q.7

How much are you satisfied with Taste and Quality of Products available at the following caf? (a) Barista (b) Caf Coffee Day (c) Mocha

Q.8

At what level are you satisfied with the prices of the following coffee caf? (a) Barista (b) Caf Coffee Day (c) Mocha

Q.9

How much are you satisfied with the delivery of product at the following coffee caf? (a) Barista (b) Caf Coffee Day (c) Mocha

Q.10

How much are you satisfied with the staff of coffee caf? (a) Barista (b) Caf Coffee Day (c) Mocha

GROWING TRENDS OF CAFETERIA IN LUDHIANA

Submitted to Punjab Technical University, Jalandhar In partial fulfillment of the requirement for the degree of Masters of Business Administration (Session 2012- 2013)
Submitted by:Surbhi Garg MBA 2nd year Roll No.1274138

KHALSA INSTITUTE OF MANAGEMENT AND TECHNOLOGY LUDHIANA

PREFACE
This work is essentially the result of final year project which is mandatory to be under taken on the partial fulfillment of the course Bachelors in Business Administration. The topic selected is Growing Trend of Cafeteria in Ludhiana It aims at the study of the changing attitudes and the awareness of the consumers. An insight into their thinking and psychology towards different Coffee ventures, selecting the Ludhiana city, the project report was made analyzing the consumer responses. This analysis and interpretation is beneficial to both the supplier i.e. retail outlets and manufacturing outlets and to the consumers. Thus, it is a result oriented project work, in spite of the best endeavors, the report is not a work of excellence as it is a students attempt to watch, record and understand the business activities and practical aspect of business by applying theoretical knowledge and concepts.

ACKNOWLEDGEMENT

It has been a great pleasure and privilege to conduct the survey on the Growing Trend of Cafeteria in Ludhiana. My sincere thanks and deep gratitude towards Project Guide and all the lecturers of our M.B.A Department for their guidance, excellent spirit, encouragement and constant criticism which gave me the confidence to complete the project work effectively. Last but not the least I want to thank the various respondents who extended their whole hearted cooperation.

Surbhi Garg MBA-2nd Sem

CONTENT
Topics Page No.

I.

Introduction Mocha The Coffee Caf Industry Introduction on Barista

1-8

II. III. IV. V.

Objectives Scope Limitation Research Methodology Selection of Population Selection of Sample Constriction of Research Instrument Collection of Data Data Analysis Chi Square

9 10 11 12-14

VI. VII.

Finding and Analysis Conclusion

15-27 28 29-30 31

VIII. Recommendation and Suggestions IX. X. Bibliography Annexure