A PROJECT REPORT ON MARKETING SPECIALIZATION TOPIC: BRANDING OF CAFÉ MOCHA SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULLFILLMENT OF THE DEGREEOF BACHELOR OF BUSINESS ADMINISTRATION BY: NAME: VISHAL R. JAIN ROLL NO: 39 SEM: VI UNDER THE GUIDANCE OF PROF.PINKY AGARWAL (COORDINATOR) & PROF.YAMINI MATHUR NESS WADIA COLLEGE OF COMMERCE PUNE 411001 2010-2011 1 Modern Education Society’s NESS WADIA COLLEGE OF COMMERCE 19, Prin. V.K. Joag Path, Pune- 411001 Tel: 26167024 Certificate of project completion This is to certify that the project-work titled BRANDING OF CAFÉ MOCHA Has been completed satisfactorily in partial fulfillment of B.B.A (SEM VI) course of the University of Pune for the academic year 2010-2011 by the following student of “Ness Wadia College of Commerce”, Pune. Mr. /Miss. : ________________________ Place : Pune Date : _____________ Principal Dr. M.M. Andar Project Guide Prof. Yamini.Mathur Coordinator Prof. Pinky Agarwal External examiner ACKNOWLEDGEMENT I owe a great many thanks to great many people who helped and supported me during writing of this book. My deepest thank to lecturer, Mrs.Yamini Mathur, the guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I express my sincere thanks to the principal, Dr. M.M. Andar for extending 2 his support. I would also thank my institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers. And special thanks to our coordinator, Prof. Pinky. Agarwal. 3 TABLE OF CONTENTS SR.NO. TOPIC PAGE NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 Introduction to Branding Aims & Objectives Introduction to Hospitality Sector in India About Café Mocha Market Analysis Marketing Strategy of Café Mocha Branding of Mocha Advertising & Media Awards & Achievements Future Plans Conclusion Bibliography 5 10 12 15 29 33 44 48 51 53 55 58 4 CHAPTER 1 INTRODUCTION TO BRANDING 5 WHAT IS BRANDING? The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers”. Choosing a brand name for a product is important from a promotional perspective because brand names communicate attributes and meaning. Marketers search for brand names that can communicate product concepts and help position the product in customers’ minds. Names such as Safeguard (soap), I 6 Can’t Believe It’s Not Butter! (Margarine), Easy-Off (oven cleaner), Arrid (antiperspirant), and Spic and Span (floor Cleaner) all clearly communicate the benefits of using these products and at the same time create images extending beyond the names themselves. One important role of advertising in respect to branding strategies is creating and maintaining brand equity, which can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. Brand equity allows a brand to earn greater sales volume and/or higher margins than it could without the name, providing the company with a competitive advantage. The strong equity position a company and/or its brand enjoys, is often reinforced through advertising. For example, Rado watches command a premium price because of their high quality as well as the strong brand equity they have developed through advertising. 7 COMPONENTS OF BRANDING The six vital components of branding are as follows: 1) Brand identity Brand identity is how brand strategists want the brand to be perceived. It is a set of unique brand associations that represent what the brand stands for. These associations imply a promise to customers from organization members. Brand identity should help establish a relationship between the brand and the customer by generating a value proposition involving functional, emotional or self expressive benefits. 2) Brand image Brand image is a key component in the formation of a clear and recognizable brand identity in the market. Brand image is related to how the brand is currently perceived by consumers. In other words what is the reputation of the brand in the market place. 3) Brand character Brand character is related to its internal constitution, how it is perceived in terms of integrity, trustworthiness and honesty. This is also related with the promise of the brand to deliver the experience associated with its name. 8 4) Brand culture Brand culture is about the system of values that surround a brand much like the cultural aspects of a people or a country. 5) Brand personality Brand personality is the set of human characteristics that are associated with the brand. It includes such characteristics as gender, age, socioeconomic class, as well as human personality traits such as warmth and sentimentality. 6) Brand essence (brand soul) Brand essence represents the emotional elements and values of the brand. Essence should be part of a long term positioning that does not change with every communication. Chapter 2 Aims & Objectives 9 Primary Aims & Objectives: The main aim of this project is to study how Café Mocha has emerged as one of the leading cafes in India & how is it different from its competitors. Secondary Aims & Objectives: • • • • To understand the Indian Hospitality sector. To know the history of Café Mocha. To know the competitors of Café Mocha. To know the Market Analysis of Café Mocha. 10 • To know the advertising & media plan of Café Mocha. • To know the Marketing Strategy of Café Mocha. • To know how Branding of Café Mocha is done. CHAPTER 3 Introduction to Hospitality Sector in India The hospitality sector includes all businesses that provide food, beverages, and/or accommodation services. This 11 includes: restaurants; pubs, bars and clubs; hotels; contract catering; hospitality services. Food culture in India is as complex as the tapestry of its heritage. The diverse culinary rituals, wide range of cuisines and the varied cooking techniques make for layer upon layer of an overwhelming yet enriching experience. No holiday is complete without good food and India makes sure it offers a wide selection. Growth of restaurants in the country has put on the table not only diverse local flavours but a huge variety of international cuisines. Indian food choices are a gastronomical delight with each region offering its signature cuisine. "Eating out today is considered an experience; it has always been a way of life for Indians. It is a way of socialising in the community where people meet new people in a preordained ambience, while savouring decadent delicacies. In the current times, restaurants have taken over the task for social gatherings, offering novelty and convenience at the same time. Independent outlets therefore continue to dominate the industry in India. There are a total of 1.5 million eating outlets in India and the number is expected to grow very rapidly in the near future," says Samir Kuckreja, president, National Restaurant Association of India (NRAI)and CEO and managing director, Nirula's. The growth of the tourism industry has also been a positive factor behind the growth of restaurants in India. An increasing number of foreign tourists prefer going stand alone restaurants. This was reiterated by M.D. Kapoor, secretary general, Federation of Hotel and Restaurant Associations of India (FHRAI), who says, "It is evident from statistics released by the Ministry of Tourism that there is an increase of foreign tourist 12 arrivals which was 6.06 lakh in November 2010 as opposed to 5.28 lakh in November 2009 and 5.32 lakh in November 2008. A 14.7 per cent increase has been noted between November 2010 and same period a year before. Foreigners enjoy the local and authentic traditional food and as a result they can be credited to the tremendous increase in the number of eating joints, restaurants and fast food centres at prime locations throughout the country." If this impetus continues to be, more restaurants are expected to mushroom across the country, even in the small towns. Chapter 4 About Café Mocha 13 History of Café Mocha: When Mocha opened its doors at Churchgate (Mumbai) in December 2001 it was a small and homely coffee shop. Right outside Berry’s restaurant, the first Mocha boasted an eclectic Indo-Tibetan theme and fresh worldly coffee. Time went by and the people came and coffee brewed. When the tables fell short but the coffee didn’t we took it as a sign. It was time to grow. By August 2002 Mocha had extended to the entire premises of Berry’s restaurant and by December of the same year, Mocha Bandra was christened. 14 Soon Mumbai’s biggest Mocha opened at Juhu with a flamboyant Polynesian and Mediterranean look. Our small and homely coffee shop had already come a long way. By now it was time to introduce Delhi to the Mocha experience. And so we cut the ribbon at GK-1 in May 2004 and Delhi had its own cozy Mocha with its unique Neo Middle Eastern Lounge theme. If things were moving fast, they just got a lot faster. Word about our coffee shop spread from lip to lip and city to city. The next flavour of Mocha surfaced in Powai, stunning its customers with its rich influences from Africa and its mesmerizing Japanese lanterns. Some things just didn’t make sense at Mocha but to us that was the idea. The thing about Mocha was the coffee shop itself. It was never designed to be a cut-and-paste format where every outlet would look the same. Go to two Mochas and you’ll find them absolutely different. That’s what brought people to our tables. That every coffee shop was vibrant, different and full of surprises! Powai was followed by Ahmedabad in 2005 with its Thai bungalow design and tapestry. The Mulund Mocha revealed how a French café theme with a hint of baroque could sweep people off their feet. If all this wasn’t stunning enough Mocha’s Chennai outlet hit the spotlight. The largest Mocha in India with 10000 sq. feet and an entirely different look and feel from other Mochas made other coffee shops feel like vending machines. Next it was Hyderabad’s turn to smile at Mocha’s new creation. With a sprawling 8000 sq. feet in Banjara hills the new Mocha was styled out of the home of a former 15 nawab. It’s every room dazzled with a different theme and was subtly punctuated by its antique colonial furniture. Jaipur got its own Mocha in March 2006 with rich Rajput motifs and royal tapestries. Finally the student town of Pune got a touch of Mocha cool in August 2006 with its very own and fresh Moroccan feel, followed by Mocha Lokhandwala and Mocha Chandigarh in February in 2007. Later in the year, Lavelle Road in Bangalore and Defence Colony in Delhi followed suit. 2009 saw a different side of Mocha with the launches of Mocha Mojo (Bandra, Mumbai) – a hippie departure from the conventional Mocha format, Mocha Mojo (Chennai) – an energetic and vibrant space consisting of electric blues, mystic reds and olive greens, Mocha ArtHouse (Delhi) – a multi-level experience fusing contemporary art, eclectic culture and wholesome food and Mocha Bakery (NSCI, Mumbai) – a little bakery where Mocha signatures are served in an environment which has a simple touch of a boulangerie. In early 2010, Mocha brewed a new cafe in Greater Kailash (Delhi) with a unique menu and a Mediterranean look to it. After gathering a legion of loyal patrons across India, Mocha then opened its gates in Kolkata in July 2010 with a 4000 sq. ft. café filled with drama, mayhem and comfort all in one place. 16 With 19 operational outlets across the country and our own central kitchen, Mocha stands for the coolest coffee shop in the country with its own sense of style. It has proven that a coffee shop chain doesn’t need to look like the cubicles in an office. Every shop can have its own wild and intense flavour. Everything from a wall to a cup can have its own sense of expression and identity. That diversity and variety in every outlet enriches rather than confuses. And makes it a coffee shop people love to visit once more. Mission, Vision & Values : 17 Mission: To be the best café chain in the country by offering a world class experience of “Coffees & Conversations.” Vision: 18 The future has big plans for our small coffee shop. We’d like to take the Mocha experience to the world. As the clouds in our dreams part we see a ‘Mocha’ in Singapore, one in Dubai and even a couple in New York and Chicago. But we don’t see it as a ravenous chain of coffee shops but rather as selective getaways. In places which have their own magic where Mocha will bring its own. We really believe that Mocha is a journey. It is an exciting journey that’s just begun. And a long way before we ride off into the sunset with ‘The End’ painted on the canvas. Values: 19 ➢ Leadership – The courage to shape a better future. ➢ Quality – What we do, we do well! ➢ Passion – Committed in heart & mind. Branches of Mocha : MUMBAI: 20 1) 2) 3) 4) 5) 6) 7) Churchgate Juhu Powai Mulund Lokhandwala Bandra (Mocha Mojo) NSCI (Mocha Bakery) Hyderabad 21 8) Banjara Hills Chennai 9) Adyar (Mocha Mojo) Pune 10)Mocha – Law College Road 11) Mocha – Koregaon Park 22 Bengaluru Mocha – Kormangala 13) Mocha – Lavelle Road 12) Delhi (NCR) Defence Colony 15) Greater Kailash 1 16) Vasant Kunj (Mocha ArtHouse) 17)Gurgaon 14) 23 Kolkata 18)AJC Bose Road Jaipur 19) Malviya Nagar 24 Target Audience: Café Mocha is to be spotted for the young and in-crowd, so much so that you will always see crowds milling outside waiting for their chance at "coffee and conversation’’. Mocha, usually targets in attracting the young, energetic crowd that may include young professionals, college students, others, etc. Mocha simply tries to induce the audience with their home made quality of coffees, a better environment (usually Casual or informal), alongside having a quotation : “ Its time for a 30 Minutes Vacation” “ Life can wait “ 25 Chapter 5 Market Analysis • Competitors Analysis: Mocha, being into this field, has a lot of competitors. The Market Share of various brands are as following: 1) Mocha – 19 Outlets 2) Café Coffee Day – 620 Outlets 3) Barista – 200 Outlets 26 4) Java Green – 75 Outlets 27 SWOT Analysis: Strengths – • Strong Brand Image • Excellent Human Resource 28 • Ambience & Décor • A base of expansion & growth Weaknesses – • Average Taste & Quality of Products • Perceived as an expensive brand • Inconvenient delivery Process Opportunities – • Strong Brand recall • Pricing • Presence of outlets in prime locations. Threats – • Coffee Substitute • Rise in the cost of coffees & dairy products • Competition from national players Chapter 6 Marketing Strategy of Mocha 29 Product: Café mocha has been selective for its cuisines & so, it has a unique menu. Mocha, offers various different 30 Multi Cuisine dishes selected from all over the world. Their menu card comprises of the following: • Coffees: Mocha provides a wide range of Coffees such as Irish Coffee, Egyptian Coffee, Café Latte, Cappuccino, etc. The best coffee out here is “The Mocha Mug”. Café Mocha on its own has a distinctive taste for its coffees. As said, Mocha does not only focus on coffees, but on Coffees & Conversations. Café Mocha has always been famous for their unbelieveably delicious coffees as well as the ‘Lounge’ music played, all over. 31 • Shakes: At Mocha, they provide a huge variety of Thick Shakes, some of which are, Kit-Kat Shake, Brownie Shake, Oreo-cookie Shake, Cold Coffee, After 8 Shake, etc. The Thick Shakes at Café Mocha does not allow you to forget the taste & makes sure that for each customer it is a beautiful experience to try their Shakes. • Coolers: Coolers at Mocha are very selective too. Some of their Coolers are, Berry Blast, Kiwi Blast, Country 32 Lemonade, Long Island Iced Tea, Pink Lemonade, Peach/Lemon Iced Tea, etc. • Teas: Teas at Mocha, are called in the Indian style, “Chai” There are various different kinds of the so called ‘Chai’ such as Irish Tea, Cutting Chai, Masala Chai, Herbal Chai, Irani Chai, Black Tea, etc. The tea in various diferent tastes makes it an unresistable experience for the visitor. • All Day Breakfast & Food: Breakfast at Mocha, is quite unique in its own. It has a huge variety with a huge variation in taste. 33 Some of their special dishes are, Bun Maska chai, African Omelette, Spanish Omelette, Hash-Brown Omlette, etc. It is available all day though being in the breakfast menu. Food, here at mocha is amazingly delecious, again, with a huge variety, like The Tapas, The Crepes, The Panini`s, The Fondues, The Crustini`s, etc. with various different dishes in the same. • Sheesha`s: 34 Mocha serves their customers with various mixes of their flavours for Sheesha`s (Hookah). This is another reason for the customers to forget their worries & chill out for a while. Price: 35 Here at Mocha, there is a huge range of food & beverages where the cost also has a distinctive range. The pricing for the products are comparatively higher & expensive. For example, the coffees here start from a range of Rs 80 – Rs 240, the breakfast menu ranges from Rs 110 – Rs 290, the food menu that ranges from Rs 180 – Rs 550 & Sheesha Prices range from Rs 350 – Rs 475. Place: 36 The Location, always plays an important role for a Business & here at Mocha, this is always kept in mind. Mocha, is not just a café, but is a place to be. Hence, Mocha is a place, which is mostly located in the most happening locations of the city. As said, Mocha mainly targets on the young/college crowd, it is much obvious that this café is placed in a locality, very close to the institutes, etc. Promotion: 37 They do their promotion immediately. The make use of the system of Combo Meals, Discount Offers to loyal customers, Memberships to the customers who are loyal, Offer of the day, Complimentary Beverage on Sheesha, live Telecast of certain events such as Cricket Matches or Fifa Matches, etc. Café Mocha performs on the spot promotion by keeping certain pamhplets on the table itself for the visitors to view the specific offers or certain offers to try out the new products. 38 Also, to promote themselves, Café Mocha offers their customers to purchase the lavish elements of the ambience which includes the Sofa`s, the Chairs, the Couches, the Lamps, etc. all with a price tag on it. People can hence purchase the things with their own likes. Café Mocha has its own Biker`s Club at Delhi where the members do meet once in every 2 weeks & also the plan for special roadtrips. Hence, Café Mocha is a lot more than just an experience. Chapter 7 Branding of Mocha 39 Cafés all over India sell a huge variety of fast food & coffee, etc. but these are generally sold under a variety of Brands. For example, Café Coffee Day, Barista, Coffee Jar, etc. but it is Café Mocha that outstands other cafes in the country. The journey of Mocha started in December 2001, & now, it is one of the best Cafes in India. The quality provided makes this café special as it challenges the taste buds of the consumer & nobody can resist its taste. And now Mocha has been doing this since 10 years & there is no one to question its quality challenge. Because of this they expanded their business in the form of branches, all over the country mainly in the Metro & Cosmopolitan cities. Since then, their popularity increased, not only for the quality, but also for the kind of service one gains, being a customer for Mocha. 40 Branding Prism: PHYSICAL ATTRIBUTES Great Ambience &infrastructure RELATION Quality Product & Expensive PROJECT IMAGE To Serve good quality of products with reliability & trust. PERSONALITY It attracts Indian as well as Foreign Customers. CULTURAL VALUE Indian as well as Foreign SELF IMAGE Great Quality Image 41 42 Chapter 8 Advertising & Media Café Mocha advertises only in the following three mediums: Print Media, Internet & Outdoors. Café Mocha does not believe in hardcore advertising which includes Television Advertisements or Newspaper advertisements, etc. Café Mocha, in the name itself is a brand. Advertising strategies: 43 Following are the advertising & media strategies: • Print Media – Cafe Mocha advertises in magazines (like the Lifestyle magazines). They also advertise in the form of Mood Cards which are exclusively available at Café Mocha, which are printed with smiley`s which can be gifted. • Internet – Café Mocha does advertise on the Internet on various websites. For instance, they do advertise on the social networking sites such as Facebook or Orkut. Also, Indian version of the Music channel, MTV, contain the advertisement by Café Mocha on their website. Café Mocha is certified by the website “burrp.com” where many people visit so often & so the brand is advertised. Also, various other websites which offer information about the most popular restaurants in the particular city, view the advertisement placed by Café Mocha. • Outdoors: Café Mocha does advertise in a way by catering at various international events & happenings. For example, Café mocha catered at the event in Pune where the International Artist, FloRida had performed. In outdoors, Café Mocha provides with its very own menu which may include selective items from the menu, with a touch of the Sheesha`s or Hookah`s. 44 Chapter 9 Awards & Achievements 45 Cafe Mocha is not just a place where people visit only for special happenings. In fact, Café Mocha is at a stage where you see people being regular visitors. They induce the customers themselves & thus serves them in such a manner that they have to come again & again. Café Mocha is registered with the website “burrp.com” which provides information to its viewers of the most popular restaurants, hotels, cinema theatres, etc. of a particular selected city. This site provides the information of the level of a particular Restaurant in the form of Stars (Café Mocha on burrp.com is rated 4.5 Stars). 46 Café Mocha is awarded as ‘The Best Restaurant’ in Pune city by The Times Awards conducted by The Times of India. The Times Awards provides certificates to the respective restaurants, of which, The Best Restaurant Award is mounted on the wall of the café. Chapter 10 Future Plans 47 Cafe Mocha has received a remarkable response from the people & hence has encouraged this brand to not only expand, but also go global. Café Mocha plans to open their outlets in prominent areas of Singapore, Dubai, New York & Chicago. Café Mocha also plans to expand its roots in India in upcoming cities like Kanpur, Lucknow, Noida, Coimbatore, etc. 48 Chapter 11 49 Conclusion CONCLUSION 50 Café Mocha is a fast growing company, It believes in purity & quality of their products that they serve it to the customer, but they are lacking in one thing from their competitor, which is advertisement. They should work on their advertisement strategies. On the other hand, the competitors are doing great advertisement. Café Mocha is a brand about luxurious ambience & quality in food & beverages. People do have a conception that Café Mocha is for only the high class people, but Mocha has its own menu in all range. Café Mocha should get closer to the customer so that they can know their quality standards as well as the best of their ambience. Café Mocha has a huge variety of products, but they are mainly focused on their coffees. The Branches of Café Mocha are few in numbers (19 cafes all over India) but still their quality being uniform all over, they have developed a very strong brand image. Café Mocha has developed this image in a short span of less than 10 years. Also, this has encouraged this restaurant to grow & expand their branches in almost all the Metropolitan & Cosmopolitan cities in India as well as beyond the Indian boundaries. Café Mocha just needs to consider their advertisement strategies, by which they can increase their current market strength. 51 Chapter 12 Bibliography 52 • www.google.com • www.12manage.com • www.mocha.co.in • www.wikipedia.com • www.scribd.com • www.mtvindia.com These are some of the websites, which were refered so as for all the above information & content. 53