Market Positioning

Going Beyond Coffee

A market-leading coffee company decided to take a closer look at their brand. They quickly recognized their brand was defined by far more than their advertising. In fact, the consumer experience and offerings in the coffee house were intricately woven with their promotional activities to produce a brand image.

POSITIONING – When we mapped the market it was not surprising to see they currently enjoyed a position of leadership and dominance in the coffee market and unless their current positioning changed, there was little opportunity for future growth.

The market map unveiled opportunities for a revised market positioning where the brand would not only be associated with coffee, but also with food.

DIFFERENTIATION – The brand was currently seen as a premium “indulgent” coffee only brand used for special occasions. Consumers were giving business to competitors who were viewed as having food options (in addition to coffee) as well as being a better value.

GROW SHARE – It became clear they had saturated the market with existing customers and growth needed to come from attracting new customers through adding food options. Adding a line of food would also help diversify their offering to existing customers and increase their share of wallet.

LONG-TERM VALUE PROPOSITION – By expanding their line of food choices this brand was able to establish a new source of revenue growth. The study was completed and presented at the beginning of 2012 and in the quarterly earnings report in June 2013, the CFO stated they had the best quarter in over seven years and acknowledged “food has been phenomenal for us”.

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