MANAGERIAL

INFORMATION
SYSTEM IN CAFÉ
COFFEE DAY
[Type the document subtitle]

SUBMITTED BY: ANKIT GULATI

AMIT KUMAR
DEVESHRI SRIVASTAVA
DIPISH PAL CALLY
HARI SHANKER
HEMLATA CHANDANI

1/27/2010
 HISTORY OF CAFÉ COFFEE DAY

Café Coffee Day is a division of India's largest coffee conglomerate,Amalgamated

Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, A Rs.
750 crore ISO 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 is one of India’s 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
Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its
business spanning the entire value chain of coffee consumption in India. Its different
divisions include: Coffee Day Fresh n Ground (which owns 400 Coffee bean and
powder retail outlets), Coffee Day Xpress (which owns 895 Coffee Day Kiosk), Coffee
Day Take away (which owns 12000 Vending Machines), Coffee Day Exports and
Coffee Day Perfect (FMCG Packaged Coffee) division.

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its
first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in
India was restricted to the intellectual, the South Indian traditionalist and the five
star coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture
in neighboring international 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 the horizon, Café Coffee Day embarked
on a dynamic journey to become a large organized retail café chain with a distinct
brand identity of its own. From a handful of cafés in six cites in the first 5 years, CCD
has become India’s largest and premier retail chain of cafes with 858 cafes in 134
cities around the country.

“Enthused by the success of offering a world-class coffee experience, CCD has

opened a Café in Vienna, Austria and is planning to open other Cafes in the Middle
East, Eastern Europe, Eurasia, Egypt and South East Asia in the coming months.”
 1996

1st Café in
Banglore
2001, owned a
Amalgamated bean coffee
trading Company

2006

Launched flavoured
water

2008, CCD brew a major

equity deal with JP Morgan

Launched flavoured
water

2009 and near future

planned to expand in
Middle East

Launched flavoured
water
LINE OF COMMAND IN CAFÉ COFFEE DAY

CHAIRMA
N

DIRECTOR
HEAD
OPERATIONS
TERRITORY
MANAGER
REGIONAL
MANAGER
CITY MANAGER

AREA INCHARGE

CAFÉ MANAGER

TRAINEE CAFÉ MANAGER

ASTT.MANAGER
L1
ASTT.MANAGER
L2
OPERATIONS
TRAINEE
TRAINEE
DEPARTMENTS
MEMBER IN CAFÉ COFFEE DAY
There are 11 departments in Café Coffee Day making sure the proper functioning
of coffee house

These depts are understated-

BUSINESS DEVELOPMENT:

The team decides upon a suitable site where the cafes canbe set up. They identify,
shortlist, and finalize a site bynegotiating with property owners. A significant effort
is involved in getting legal clearences and statutorycompliances. After all
formalities are completed, the site ishanded over to theprojects team.

PROJECTS:

The team comprises of some of the best designers whoensure that the coffee
culture is spread across the countrythrough beautiful outlets. All new cafes are
built with astandardized design and the look of the café is in sync withthe brand
positioning. They aim to build cafes in the shortestpossible time, at the least
possible costs to capital outlay. Arecent innovation is the Lounge cafes which are
set up in Delhi, Bangalore, Hyderabad and Kolkata.

OPERATIONS:

This team achieves their sales objectives and is responsiblefor the daily running of
their cafes in a profitable manner.Customer interaction is very important for this
team, as theyare the ones who interface with the customer and providethem with
a satisfactory service and product experience.Café managers train all their
employees who are involved inday-to-day operations.The café staff is their brand
ambassador. The brand image ofcafé coffee day is and will be reflected through
them by theway they dress, behave and carry themselves , both withinthe
organization and outside. They are the faceof thecompany since they will be the
first point of interaction withthe customer.

FOOD AND BEVERAGES {F & B}:

CCD are a lot more than coffee. Apart from serving the bestcoffee in the country
they also serve a wide assortment ofsavories and desserts. The various coffee
concoctions thatthey serve are the creations of their F&B team. They alsoensure
the highest level of hygiene and food quality. Theyimpart training to the team on
the preparation of the best quality of coffees and food at their cafes. The F&B
teamsources and manages vendors who supply food to the cafes.

MARKETING:

The marketing team is responsible for the brand positioningand all brand building
activities that result in increased sales and greater visibility. They are also
responsible for the various sales promotion activities and tie-ups. This teamdesigns
and manages the merchandise category, which is displayed and sold at their cafes.
They constantly trackloyalty programs and promotions at the cafes to
helpminimize sales. The café citizen program is a uniquecustomer loyalty tool
which helps us to create new customer and retain existing ones by rewarding them
with handsomepoints which can be earned and redeemed at the cafes.

HUMAN RESOURCES AND TRAINING:

The HR team deals with all matters pertaining to peoplewithin their team. They are
responsible for recruitment andselection at all levels from team members to
themanagement staff. They are responsible for employeesalaries, career
development and councelling. Constantefforts are made for employee upgradation
in terms o improving skills and job satisfaction to meet the aspirations
of all employees.

ACCOUNTS:

They look after the day to day accounting and financialactivities and also provide
them with the financial reports which will help them, find out the profitability of the
outlet help them reduce the costs and ensure compliance andfiscal discipline at
the cafes.

SUPPLY CHAIN MANAGEMENT:

This is the team which ensures that all stock keeping units ofitems used in the café
are received at stores from vendors and distributed to the cafes on time. They
receive storeorders and maintain the inventory of stock keping units sothat cafes
do not run out of critical supplies at any point.

MANAGEMENT INFORMATION SYSTEM DEPARTMENT :

Their function is mainly to update the point of sale software and the café website
and provide MIS reports to aid management. They also look into any other
systematical functioning, repairs, and replacements at cafes and offices. The café
staff is trained on the billing software by this team. Their new initiative is the
phased roll – out of the Wi Fi point of sales billing system. This department looks
after end to end Information and Technology solutions in order to ensure proper
functioning of Café Coffee Day. These functions are :

• Billing Process
• Transfer in Transfer out
• Flow of information.
• Inventory Control.
• Feedback Analysis
• Competitors Strategy
• Location Planning

AUDIT DEPARTMENT:

In this department they have expert team of Auditors who have got competency in
Finance and Accounts and they frequently visit to different locations to check the
accounts and to maintain the transparency.
They also look after whether to venture into a new outlet by making a Financial
Assessment and checking its viability.
LOGISTICS DEPARTMENT:

This department is the backbone of Café Coffee Day.The menu of CCD contains
many bakery items which are perishable and to be provided on the day so the
transportation task is very important and should be flexible.

NEED OF MIS IN CAFÉ COFFEE DAY :

Café Coffee Day has a great success story from the single store in Bangalore to
approx 5000 outlets.
With such an exponential growth they gradually started to feel the need of an
integrated system to look after supply chain management because there was
no proper medium of coordination between the suppliers and the outlet
managers ,due to this the flow of information at times the information was
misinterpreted and not correlated this all happened because of no customer
database was maintained and outlet manager could not recall the need of
customer. There was not a proper inventory control, some outlets receive excess
amount of inventory so the cost is increased and they were not able to come
across this problem in the absence of proper information system .billing
problem, there was a deep problem faced by café coffee day in initial years
working of frauds at billing ,of some unusual favours done by ccd staff. To tackle it
billing system was made centralized .and as soon as billing was done bill was
generated , its copy was automatically mailed to regional head office and country
head office.as well as standardization was brought in complete process of billing,
by using mis. Logistic problem, with the passing days lot of resources were
wasted due to expanding business of ccd, in terms of logistics these were
improper communication with logistics team about the requirement at different
outlets within city, within state .leading to problems like oversupply, late supply or
at times no supply of requirement leading to opportunity loss and huge business
loss bringing bad name amongst customers. Advertisement problem, in the
competitive world to stay in business promotion and campaining of product are
equally important ,all the promotion done on internet and e-media is handled by
mis team.
WHAT WERE THE CHANGES BROUGHT IN MANAGEMENT
INFORMATION SYSTEM :

To cope up with the arising problems ,they had built in server storage
system ,but due to continuous exponential growth ,the system collapsed because
of small storage capability . this system didn’t allow any type of centralization in
respect of billing process and inventory control ,making feel Bangalore head
quarters helpless. They need such a storage infrastructure which can be scaled up
against increasing demand. So at that point of time they went in for a direct –
attach- storage solution from HP with the capacity of 3tetra bytes. With the
daily requirement of data base of about 2 giga byte which was to be stored and
maintained ,to scale up the system with demand, in march 2008 ccd took the call
to upgrade its system from Intel xeon environment to intel intaniom based HP
integrity based system. CCD developed SAN of 15 tetra byte capacity in its
Bangalore data centre.the SAN went on floor in 2008 after 1 month of testing ,it
has been sized for 3 years keeping in mind of 2 giga byte growth per day.
Café Coffee Day opted to run its SAP –ERP application on SUSE Linux
enterprise server. Based on operating systems prize performance ,reliability and
scalability. The ERP environment is hosted in data centre managed by third party
specialist and offers extremely high resilience. They customized the SAP software
for ccd requirements managed its roll out across the organization and provides
support and maintenance for SAP ERP. The software is based on JAVA.

SAP ERP plays the crucial role in helping to manage the internal operations and to
maintain the extended supply chain. the five SAP server connected to SAN and
this is how increased capacity has helped ccd increase its oracle data base
space.
This was how ccd managed its data base and keep on inventing ways to maintain
ever Increasing data base.
But how to know customer preference ,customer contacts ,customer
satisfaction ,e-usage to guarantee customer top of the world service.

SALESMARTZ :
Café Coffee Day uses the SALESMARTZ software in order to meet its everyday
technology needs.

SaleSmartz Pro

CRM/Sales Force Automation

• Create full printed quotes and invoices in seconds

• Display your products in an electronic catalogue

• Keep track of you customers and your contact with them

• Use templates to send eMails, faxes and letters to your customers

• Email filtering and sorting for contacts

• Fully networkable customer and/or single user

• Portable, great on a laptop, telecommute and work from home

• Synchronise with an office network

• Keep track of stock levels

• Setup your own quote/order templates

• Export quotes and orders to accounting systems

• Create mailouts in seconds

From a quick and easy software solution for a small business

To a comprehensive Enterprise solution

MINIMUM SYSTEM REQUIREMENTS

O/S: Windows 9x/ME/NT4/2000/XP,Vista

RAM: 16 MB Free RAM

Disk: 10 MB Free Space

Processor: 486, Pentium Recommended

Network: All leading protocols

HOW MIS REVOLUTIONIZED THE FUCTIONING OF CAFÉ

COFFEE DAY:

SUPPLY CHAIN MANAGEMENT:

CCD in order to control their inventory they implemented SAP ERP system and SOP
(sale of point) cash register ,with the help of five servers all the outlet cut across
the nation were connected to their regional head quarter and in the process all the
outlets were connected to country head quarter. for example data base of any
given outlet is maintained with regional head quarter and complete data for last
many years (from the date the outlet has started operations ) had been
maintained at country head quarter at Bangalore. All the informations reach to the
head quarter and the anlayze the data and accordingly the maintain their supply
chain in order to achieve the responsiveness.

They achieve the efficient supply chain due to cross-dock implementation. In

cross-dock they do not store the inventory to a particular ware house. As they
receive the order they supply it to different outlets without storing. In this was they
reduce their cost

BILLING SYSTEM: As they implemented the POS system all the informations
regarding sales reach to the head quarters from all the outlets. From the given
database they predict the demnds of a particular products in differents products
and keep on introducing the new new products according to the consumer taste
and preferences.For example they have introduced the bakery products in their
outlets due to the demand so they are changing according to the requirement.
 TRANSFER IN AND TRANSFER OUT:Transfer in and Transfer out is a system by
which they can exchange their inventory as per their requirement from their
different outlets . But important is that how would they know their requirement
and how can they know from where they can get their inventory ? Here they are
using MIS means SUSE LINUX ENTERPRISE SERVER. All the outlets are connected
through this server. Due to this they know the status of inventory in all outlets
.These all outlets are connected to their main head office through the server ,
which is placed in bangalore. If any product is short at any of the outlets, they get
it from another outlet and these all information reach automatically to its main
branch with the help of MIS system.

LOCATION PLANNING :A business process needs to deal with numerous variables in

the global environment. One such process is location planning. Location planning is a
vital component in making any business successful and realize its full potential. It is the
foundation step and if this goes wrong the entire objective of the business fails.

CCD has effectively made use of the MIS in order to manage the massive data related to
the various variables which are involved in location planning. This has helped CCD to come
up with the optimum decisions with respect to the location they want to open their store
in.

The variables on which data is collected for location planning by CCD are :-

• Is the location situated on a MAINSTREET?

• Is the location situated in a COMMERCIAL AREA OR RESIDENTIAL AREA?
• Is it a POSH AREA?
• Are there any SCHOOLS/COLLEGES nearby?

CCD collects data on the above mentioned questions through various surveys and polls.

This data assists the Business Development Team to zero-in on a location.

For e.g. CCD OPENED A CAFÉ IN PGI DENTAL COLLEGE BASED ON THE DATA COLLECTED
REGARDING THE NEED OF THE TARGET CONSUMERS (college students).

CCD IS ALSO OPENING A CAFÉ IN INDIRANAGAR, LUCKNOW WITHIN TWO MONTHS.

It was able to come to this decision as the data collected showed that a majority of the
population living in that area was that of students in the age group of 18-24. This age
group constitutes the largest % age of customer base of CCD.

RIVAL STRATEGY: an important thing which has got nothing to do with MIS but
still important for information is how to keep information about rivals sale and
rivals product profile is, suppose ccd send its one of the employee to the outlet of
rival like barista as a customer there after taking service ,this customer is
provided with a bill let the bill number be x and then in later part of day just before
the outlet of rival is about to close they again send an employee to rivals as a
customer ,again he takes a service and is again fetched with a bill .suppose the bill
number is y ,so difference (y-x) is the total sale of the day . and by following such
activities product demand of such stores could also be known.

CUSTOMER RELATIONSHIP MANAGEMENT: In the modern time , with the

increasing competition ,for any brand it is becoming important to not only provide
value to customer ,but also to please the customers , to develop relation with
customers. In case of café coffee day ,they did it by first taking some of the
personal information from customers like dob, anniversary , preferences . then on
these special occasions ccd staff not only wishes these customers , but also greet
them with e-greetings or by sending greetings at home. Inviting them and serving
them according to their preferences . to tap the craze amongst the users ,they tie
up with the brands like bajaj pulsar ,here, they allow these brands to promote the
product in outlets of ccd , and providing these products as lucky draw.(for allowing
bajaj pulsar to promote their bike in premises of outlets ,ccd take 3 lac per
month ).
DRAWBACKS OF USING MIS:

• The performance of an MIS hugely depends on the kind of application software

being used and in order to avail the best softwares, substantial costs are incurred.
Therefore, CCD has to invest a lot of capital in procuring the softwares.

• Since the Management Information System is highly sensitive, they require

constant monitoring and CCD has to take care of its constant maintenance.

• The workforce has to be well-trained to handle such systems as the input they are
giving into the system will determine the authenticity of the output generated by
the system.
BIBLOGRAPHY:

• www.cafecoffeeday.com

• Gomtinagar café coffee day outlet

• Hazratganj café coffee day outlet

• J.Shankaran (Citi Manager)