JENNIFER BALINSKI
& NICHOLAS WINTERS
MARKET OVERVIEW
•
Economy
•
•
•
Solid (as it relates to this market)
25 universities and colleges in London
64 new offices currently under construction
•
construction almost up to pre-recession levels
•
Technology
•
• It’s all technology based
• Customization
• Time-saving
• No need for human interaction
• Made the same way every time: dependable/consistent
The cultural milieu
•
•
•
They embrace technology
Progressive people
Tea time
COMPETITION
Vending
Machines
Coffee
Coffee
Shop
Shops
Machines
Convenience In-home
Stores and
Coffee/Te
Mobile Stores a
Kafevend
Costa
Express
Tesco Extra
Costa
Coffee
Keurig
Expresscafe
Caffe Nero Food trucks
Coffee beans
Coffee@Work
Starbucks
Ground
coffee
Coffee carts
Coffee shop
brands
MARKET GROWTH POTENTIAL
• Parent company: SnackTime
• The biggest vending machine company in the UK
• One of the fastest growing companies in the UK
• Previously-mentioned construction levels
• Costa Coffee (owns Costa Express): +500 locations in UK
in 5 years
• Overall Business of Vending Machines
• UK Coffee Leader Summit 2013: 5% vending machines
• Full service coffee shops: 93%
• Tea: long-term decline
• BUT 75% of tea drinkers think tea is part of being British
Strengths
Weaknesses
-Thriving: Parent company is one
of the fastest growing in UK
-Great partnerships: Mars, Dr.
Pepper, Walker’s/Lays, Kenco
coffee, Argos, Boots
-Convenience
-Ethical: Fair trade and Rainforest
Alliance Certified
-Consistency: Same drink every
time
-Variety: Stand alone or
countertop machines for varied
space and use, brands
-Location/Portability: It’s where
you are
-Variety of payment methods:
Chip and pin (no eating dollars or
coins)
-Customer service
-Distribution
-Experience: no sitting and
enjoying
-Brand recognition: Kenco
doesn’t have the brand strength of
Costa or Nero, etc.
-“Old” taste perceptions:
Different process than old
machines/a lot fresher
-Perception of error: Machine ate
my money, bag of chips stuck,
etc.; “It’s a gamble”
-Preference: 20% of people prefer
NOT to get their coffee from a
machine
Opportunities
Threats
-Expansion: Offices, other types
of vending (electronics, etc.), more
universities, different locations
-Advertising: Currently lacking
-Pay by App : link to credit card or
PayPal
-Sports: advertising and vending
-Celebrity endorsement
Costa Express: and other
vending from established
coffeeshops
Costa’s Expansion: 500
locations: transit, universities,
convenience stores
Brand loyalty: to other brands
Rapid expansion: standard of
employee quality
Mechanical error: need to ensure
that you can quickly respond to
errors and customer service
requests
-Health studies: Ex:// anti-caffeine
-Food allergies: Cross
contamination, Ex:// nut allergies
MARKETPLACE
BATTLEGROUND
• Marketing mix in the business category
• AdWords
• Trade magazines
• Gimmicks and viral videos
•
Ex:// Douwe Egberts facial recoginition yawn vending
machine
• B2B Public Relations
•
Consumers then choose what’s there because company
purchased it and it’s right there
• NOT a lot of commercials
• Advertise by BEING there (depend on you seeing the
image on the machine)
MARKETPLACE
BATTLEGROUND
• What sets Simply Drinks apart
• One of the first into the market
• Strong and experienced parent company
•
Financially set
• Rent, lease, or buy
• Well-known client base
• Great staff training and customer service
•
Customer service pay linked to how well your machine
performs
• Don’t need brick and mortar stores
•
•
can expand anywhere there’s electricity
carts
• Category life cycle stage: growth
TARGET AUDIENCE
University students and young professionals (18-30 yrs)
• Average UK work wk: 43.6 hrs
• More accepting of technology v. interaction
• On the go: Convenience
• Non-gender specific
• -⅔ of UK users are effected by convenient location
• -⅓ base choice on brand-- “transumers”
• 22% of UK consumers value fair trade when making
purchasing decisions
• Price: affordable
• only willing to pay more if they taste a definite difference
TARGET AUDIENCE
• Coffee Consumption
• 800,000 British adults visit a coffee shop at least 4x/wk
• 80% of UK’s adult population drinks coffee
• 40% of 18-24 year olds are drinking coffee each day
(2011)
•
14% of college students drink more than 3 cups/day
TARGET AUDIENCE
• Media Consumption
• social networking: 23% of ALL UK-users time online
• television: 35% of daily media consumption for UK users
18-30
• Media multi-tasking: 35% of all media consumed
throughout the day TOTAL
• Among 16-24s, 52%+ of media activity is simultaneous
-Not “just” TV
• 800 thousand commuters use the tube per day
COMMUNICATION OBJECTIVES
•Communication strategy
• Position Simply Drinks as the number one consumer
choice for out-of-home machine coffee purchases
• Influence consumers to make Simply Drinks part of their
daily work routine
• Defeat perceptions of “old” vending machine problems
COMMUNICATION OBJECTIVES
• Big idea
• Your day doesn’t stop--why should you?
• The kick you need to keep going
• Redefine your daily grind
• Brand image
•
•
•
•
Timely
Convenient
Quality
Making your day easier
MARKETING MIX
•
Public Relations
• Social Media
• Events
• SEO & AdWords
• Advertising
• Tube advertising: print
• App
CONTENT-EVENTS
• Taste the difference event
• Combats low-quality taste and service perceptions
• Teaches users to interact with the machines
• Promotes: we’re on your way/we are where you are
• Vote for your university or work area
• outside of T stations
• High-traffic areas (lobbies of large office buildings)
• Utilize social media
• Locations
•
•
10 locations throughout London
Second half: Vote for which one stays
CONTENT-SOCIAL MEDIA
•
Better use of Facebook account
•
• Charity work
• Hold conversations
Create Twitter account
•
Engage Twitter-users using existing #dailygrind
•
• Continue participating in other relevant conversations
Use to address customer service
•
Coffee facts
•
Alert consumers when a machine is down, and the closest
alternative
•
“Polls”
•
•
Where to expand
What brands/products/flavors to partner with/provide
CONTENT-APP
• Use for payment
• Chip and pin
• Credit card
• Debit card
• PayPal and credit card pre-set (much like Uber)
• RFID (tap—like T pass)
• Coupons, special offers, use to track purchases
• “Route-based” messages
• Store Finder
• Traffic updates/Tube delays
CONTENT-TUBE ADS
• -# kilometers to center of London, # meters to hot coffee,
Address of stop
• “Redefine your daily grind”
•
•
easy visual ad
stacks of paper on desk (could be office or university)
SOURCES
http://www.growthbusiness.co.uk/research/features/1654783/the-top-50rising-stars-of-2011.thtml
http://www.dailymail.co.uk/news/article-98342/Britons-working-48hours-week.html
http://www.simplydrinks.co.uk/index.aspx
http://www.kafevendingmachines.co.uk/?gclid=CI7gjZisg78CFevpwgodo
BcAzg
http://www.expressvending.co.uk
https://learn.bu.edu/bbcswebdav/pid-2404572-dt-content-rid8008976_1/courses/14sum1comcm738sa1/Coffee%20Shops%20UK%20Executive%20Summary.pd
http://www.coffeeatwork.uk.com/
http://www.costa.co.uk/business/costa-express/
http://academic.mintel.com.ezproxy.bu.edu/display/701138/?highlight
SOURCES
http://academic.mintel.com.ezproxy.bu.edu/display/700166/
http://academic.mintel.com.ezproxy.bu.edu/display/701138/?highlight
http://www.fruitionlondon.com/uncategorized/uk-coffee-leader-summit-2013/
http://www.studylondon.ac.uk/universities?ref=carousel
http://wearesocial.net/blog/2010/08/uks-media-consumption-habits/
http://stakeholders.ofcom.org.uk/market-data-research/market-data/communicationsmarket-reports/cmr10/uk/
http://londontransportdata.wordpress.com
http://www.ft.com/intl/cms/s/16ff9edc-e026-11e3-b70900144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms
%2Fs%2F0%2F16ff9edc-e026-11e3-b70900144feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=
http://urbantimes.co/2013/04/a-coffee-a-day-charting-the-uks-growing-addiction/
http://www.adweek.com/news/advertising-branding/brands-find-link-between-viralvideos-and-vending-machines-151648
http://www.teaandcoffee.net/