Brand Segmentation and Positioning - Espresso Coffee Machines

The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.

A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey).

In that area, the household is the sale peak, which means, every households needs a coffee machine to improve life quality. The housewives will purchase a coffee machine which can be more efficiency to support every needs. As American life style, coffee is essential for every morning and if the coffee can be made in house not outside purchase, housewives will not go out for coffee. It will decrease the time which spend on purchase everyday needs. Considering the general workers and employees will needs coffee more than child and elders, Nespresso will sale for the people which have basic demand for coffee which means every workers and employees will purchase a coffee machine in the house or workplace. Therefore, the age of target customer is 15 to 64 years old. According to the market investigate, the population volume in that age is above 200 billions and it still have positive increase trend in 2012. Considering the professional Nespresso machine is not the basic needs that everyone can afford; however, the commercial Nespresso machine is not that expensive for general workers; consequently, the commercial one will be more useful and has more competitive

Espressolab, popularly known, as the shortcut to setting up a café business is an integrated specialty coffee company that opened 3 years ago. The company currently has 20 outlets spread across Malaysia and Singapore and it aims to become the number one coffee brand in South East Asia in the next 5 years by opening more outlets in places like Cambodia, Indonesia and China. The vision of the CEO Joshua Liew has lead the company to become a global brand in a short period of time as the company serves brand value , brilliant brand experience that connects to its target customers through emotions. The big question is how does the company deliver this with extreme competition thriving in this industry? The company operates on an interesting concept known as business licensing model that gives an opportunity to new entrepreneurs who are passionate to work to opt for the license of the café. By gaining the license, one not only gains the Espressolab brand name but also support through a 10 day staff training, supply of raw materials , aid in financial management through preferential pricing strategy. Unlike franchising, the company does not make decisions for each of these entrepreneurs or look into the details but it gives them the flexibility to run the business and ensures that these coffee stores maintain their

Handpresso is a product designed for coffee lovers. Inspired by the quote “Simplicity is the ultimate sophistication”, Handpresso’s is developed as a simple small portable espresso machine. It is invented by Nielsen Innovation which specializes in creating new-to-the-world products. Nielsen Innovations, founded in 2000, designed and developed several innovative products such as Wi-Flow technology for a vacuum cleaner and Reelight – battery-free bicycle lights. Handpresso started as a self-financing product design project. Upon completion of the basic design, Nielson Innovation approached a couple of leaders from the espresso market to obtain a licensing agreement. The companies were happy with the portability offered by the Handpresso but they were not interested to purchase the product. Since there were no direct substitutes in the market, Nielsen Innovation decided to develop the product in-house and take it directly to market. Today, after the product development is almost complete, there are many questions that need to be answered for developing a business around this innovation. The biggest question posed is what next?

The growing chained coffee shops culture in the on-trade has inspired manufacturers to launch specialty coffees in the off-trade. This has led to an increase in both volume and value sales of coffee in the Netherlands. Dutch consumers are becoming more adventurous when it comes to coffee, as is illustrated by the growing popularity of espresso, cappuccino, single origin coffee and flavored coffee.

By 2003, the number of retail specialty coffee shops, cafes, kiosks, coffee carts, and roasters in the United States reached over 17,000, equating to nearly $9 billion in sales. According to the Specialty Coffee Association of America, 16 percent of adults in the United States drink coffee from one of these specialty outlets daily. (“Organo Gold”, 2008).

The Nespresso was established in 1986 and it has been serving its esteemed customers ever since. Its story started with a very simple plan, that every person

20 million Americans drank gourmet coffee daily in 2003. As a result of this amount of coffee lovers that can’t start their day without coffee, Keurig. Inc had the idea that they should be able to brew their own perfect cup of coffee any time they need. People started paying $1.50 or more for a cup of gourmet coffee at coffee shops like Starbucks. This gave Keurig. Inc the idea of offering coffees in a single-cup proportion size to offices. After the placement of Keurig brewers, gourmet coffee sales increased by 40% in the U.S at-home coffee market. According to that big percent Keurig management wanted to develop an at-home single cup coffee brewer for coffee lovers. Keurig Inc. targets customers

Costa coffee founded in 1971 in London, UK. Now, it has become the biggest top coffee shop chain in UK. However, Costa should be prepared for danger in times of peace. In this report, some suggestions will be proposed to improve Costa coffee’s marketing mix over the next three years. We begin with a brief description of the data we collected, then go on to analyses coffee shop market environment in UK; the next section looks at Costa coffee’s current statement of marketing mix, and finally we give recommendation of the marketing mix in the next year for Costa Coffee. Section 1 Primary research method Primary data was collected in the form of questionnaire with 15 questions, which was posted on the Internet. Also,

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

However, Nescafe’s product involvement strategy goes even further; it wants consumers to experience the aesthetic perception of the nice packaging and hedonically enjoy various tastes and preparing options it offers (Montgomery, 2014). By carefully paying attention to the latest changes in consumer preferences, Nescafe was successful in making its consumers feel highly involved with its products. Due to its presence all over the world, the brand learned that acculturation is a much better strategy than global standardization. Thus, when it comes to Nescafe there is no global mass customization, but rather a regional-based mass customization. Nescafe has an almost aggressive worldwide strategy when it comes to consumers experiencing the product. The consumer is supposed to be able to consume Nescafe products everywhere, whenever possible and the way she/he wants to consume it. Nescafe is present in most of the Croatian bars/coffee shops in either coffee-to-go or in a regular consuming option . Nescafe is also present in most vending machines allowing the consumer to choose from various tastes and choices to satisfy her/his needs. All things

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social

Distinguishing yourself with a product is only conceivable if the product is premium. Starbucks is a solitary coffee making establishment; we have square measure Spinelli, Suntec Dome Holdings and occasional club among others offering the same products as Starbucks. A consumer must establish a brand and elicit a response before strongly building a relationship. Brand equity is about creating a brand 's responsiveness depth and favorable unique brand association. We can quickly determine it by looking at the brand resonance. Most people flock at Starbucks mostly in the morning and in the evening and sometimes in between breaks during the day just to have a taste or bite of their brands. The loyalty experienced by consumers and how regular they visit the place is an indication that the have quality produce.

The findings will demonstrate that Di Bella Coffee is one of Australia´s leading specialty coffee chains and is starting to expand into the international market successfully. The combination of a high quality product, the focus on customer service and new innovation together with the strong brand image have led to Di Bella Coffe´s success. In order to stay competitive and profitable in the coffee market and to meet consumer demand, Di Bella Coffee will need to evaluate the changing needs of the coffee