Positioning Strategy and Customer Profile for
The Bottom Line Coffee House
Group 5
Courtney Bishop
Danny Keenan
Patrick Abraham
Megan McGinnis
1
Executive Summary
After our analysis of The Bottom Line coffee shop we have come to several conclusions
regarding the ideal target market and strategy of which they should take to promote their business. We
first focused on taking field notes and researching each of their local competitors. These field notes
helped highlight the features and benefits of The Bottom Line. Furthermore, this process helped to
accentuate what The Bottom Line had to offer in comparison to the other coffee shops in the area. The
next step we took to analyze The Bottom Line involved carefully and extensively reviewing interviews on
coffee and coffee shop preferences. Based on the interviews, we then established three market
segments to focus on. We named them comfort connoisseurs, conscious coffee drinkers and loyal
followers. We chose to target the comfort connoisseurs because we felt as if they best fit the
characteristics that The Bottom Line has to offer. These features such as comfortable seating, cozy
setting, numerous outlets, and Wi-Fi access all attract comfort connoisseurs. Product category and
message strategy proved to be important factors when developing this positioning strategy and
customer profile. We discovered the product category to fall under the grouping of privately owned
coffee shops, which seemed most appealing to our target market. Currently, customers believe that
Biggby is the best coffee shop due to its inviting environment where they go to do homework, or read a
good book. However, we stress that The Bottom Line will better satisfy their needs. Their constructive
atmosphere is something that the comfort connoisseurs will appreciate. We seek to change their
attitudes to support the belief that The Bottom Line is the best place to go when working on homework,
or doing some light reading. All of the information would potentially lead comfort connoisseurs to The
Bottom Line.
2
Positioning Statement
To ___Comfort Connoisseurs____,
The Bottom Line Coffee House is the brand of ___privately owned coffee shop____
that provides ____the necessities of home___
and represents ______the identity of a dedicated college students_.
Target Market
Segment # 1 Comfort Connoisseurs
To qualify as a member of this segment, a respondent must be looking for all the necessities
that your home has to offer, such as, Wi-Fi, comfortable seating, good lighting, and an
atmosphere that is conducive for relaxing as well as getting work done. This segment consisted
of interviews 3 and 4.
Young, motivated adults in their 20’s. This segment prefers a quite and quaint atmosphere so
they can utilize the space to be productive. Prim examples like studying, writing papers, group
meetings, and light reading all exemplify why this segment would go to The Bottom Line.
Overall, the main goal of this segment is to get work done while enjoying their coffee.
3
Segment # 2 Conscious Coffee Drinkers
To qualify as a member of this segment, a respondent must both be looking for convenience,
constructive work environment and a multitude of options besides coffee. This segment
consisted of interviews 1, 8 and 6.
In their 20’s, this segment is usually busy and on the run. They typically want food with their
coffee because they complement each other. Usually frequents McDonald’s or Tim Horton’s.
They like to spend less, but still get a quality cup of coffee. Coffee is not their primary
reasoning for stopping; usually they have to do something that requires energy. Drive thru’s are
popular ways of obtaining their preferred drink. Places like Starbucks and other premier coffee
shops are too expensive and do not have as many options as places like Biggby. The coffee
shop choice reflects their desire to get as much done as quickly as possible even if it comes at
the expense of the quality of the product.
Segment # 3 Loyal Followers
To qualify as a member of this segment, a respondent must both be looking for loyalty, quality
products, and this segment consisted of interviews 2, 7, and 9
4
In their 20’s, this segment values quality products and they are willing to pay more, they value
their friends opinions, and enjoy the consistent costumer service. These members like to spend
time in the coffee shop beyond buying drinks. They utilize the space and the free Wi-Fi. The
usually frequent higher chains like Starbucks, Biggby, and Coffee Bean. They prefer to get
their drinks for enjoyment reasons rather than actual needs. The frequent the coffee shops
about 3-4 times a week. These qualities reflect this segments ease of conformity, they are
subject to peer influence and what society deems “cool”.
Comfort Connoisseurs
Definition of Segment- This segment prefers all the necessities that your home has to offer,
such as, Wi-Fi, comfortable seating, good lighting, and an atmosphere that is conducive for
relaxing as well as getting work done.
Why we chose this segment- We chose to target comfort connoisseurs because the clients has
a very small, quaint, and cozy setting. We believe that this will attract college students who
need a quiet place to study and enjoy a quality cup of coffee.
.
5
Product category
Privately owned coffee shop: Our target market perceives privately owned coffee shops
to provide a variety of amenities that they believe are beneficial to their lifestyles.
Upscale coffee shops: They feel they need to be a part of the “clique” to fit in.
Food/coffee chain: They are very busy and crowded. There is not a good place to be
productive.
Premium chain coffee shops: They are not friendly or warm. They are too “corporate”.
They are crowded and snobby.
Variety coffee shops: They have an overwhelming selection of options. They tend to be
expensive.
Entering coffee market: Places like McDonalds who are always busy with screaming kids.
We chose privately owned coffee shops as our product category because we feel that it
best fits the features that our target market is looking for.
Features and benefits
Position the brand as a . .
.
Features to highlight
Space, quiet, peaceful
Instrumental benefits
Get work done
Hedonic benefits
Symbolic benefits
None
Identity as a productive
person
6
Studious environment
Amenities
Outlets, WI-FI,
Tables
Resources to do
your work
None
Representation of
home
Comfort
Chairs, music, lighting
Ease your mind
Feels relaxed
Identity of a calm life
Message Strategy
I believe Biggby is the best
coffee shop because of its
welcoming environment

The Bottom Line has a
constructive atmosphere

I believe The Bottom Line is
the best place to go to work
on homework, read a great
book, or catch up on the daily
news.
↓
↓
I go to Biggby to catch up on
homework, reading, etc.
I go to The Bottom Line to
work on homework, study for
exams, and read a good
book.
Current action
We feel that Comfort Connoisseurs go to Biggby because they aren’t aware of what The Bottom Line has
to offer.
Future action
Thinking about all the attributes that The Bottom Line has, we feel that comfort connoisseurs will take
full advantage of studious atmosphere.
Current belief
We chose this statement because our target segment expressed in their interviews that they very much
enjoyed Biggby.
Future belief
In the interviews our target segment said that they went to coffee shops primarily to be productive. We
believe that the comfort Connoisseurs could be more productive at The Bottom Line than at Biggby.
7
Consumer proposition
We feel that The Bottom Line would be more attractive to our target market, due to the amentites that
they offer:





Studious space
Outlets
Free Wi-Fi
Comfortable Seating
TV
Appendix A: Field Notes
Megan McGinnis



8
Biggby
o Open/spacious
o Inviting
o Friendly staff
o Clean
o Light smell
o Cozy
o Lots of seating
o Parking lot
Great Lakes Coffee
o Spacious
o Picnic tables
o All brick walls
o Woodsy
o Beer and wine
o Pub feel with coffee shop features
o A lot of students
o Food
o Hardwood floors
o Drinks are made for here and not to go
o Patio
o No parking lot
o Coffee is served until 11 am
o High end
The Bottom Line
o Basement
o
o
o
o
o
o
o
o
Small
Not many people
Quiet
Jazz music
No food
No parking
Hot
When I asked for a glass of water, she gave me extremely warm water with no ice.
Daniel Keenan
1. Biggby Coffee
-As I first walked in I noticed the brightly colored walls, which really gave the shop a
warm inviting feeling.
-I also noticed the lobby was spacious
-coffee area seemed like it needed to be wiped down
-I felt like the staff was from Wayne State
-had other beverages other than coffee I.E. Pepsi, Mt Dew
-had alternate parking in the back as opposed to just parking on Woodward
-Well air condition, comfortable temperature
- pop music style
2. Great Lakes Coffee
- Older look
- Spatious
- Picnic tables = take up more space less seating unless you want to sit with someone
you don’t know
- No Alternate parking
- Beer sold here
- Food
- Outdoor patio
- Coffee is only served until 11 Am
- More of an alternative music
9
3. Bottom Line Coffee
- Dark inside/ Small
- Outdoor seating
- A/C is not on warm in here
- Concrete floors
- No Food
- Jazz style Music
- Clean
- New
Courtney Bishop
Biggby Coffee field notes:
- Environment is bright and friendly.
- Smell of coffee hits you when you walk in
- Lots of seating
- Products on display
- Area where self serve coffee was dirty
- Students where hanging out working things
- This coffee shop has things other than coffee they offer pop and redbull
- Light and poppy music.
- Parking available
- The drink sizes are bigger than most coffee shops. Tall= 16oz
- Offer most drinks iced, frozen, or hot
- Bathrooms are locked
Great Lakes Coffee field notes:
-
10
spacious but limited seating
industrial design atmosphere
sells alcohol and coffee
lots of students hanging out
popular bar area
out door seating
Food
Drinks severed to drink at space not to go
Vintage feel
No parking
Mello/alternative music
Picnic tables/rustic seating
Coffee is only served till 11:00am
The Bottom Line field notes:
-
small, dark
cement floors
outdoor seating
not many people inside
no air conditioning
no food
limited coffee menu
jazz music
quiet
friendly employees
clean
not much room for expansion
warm water
Patrick Abraham
Biggby Coffee field notes:
-
Inviting Enviornment
Lots of seating
Large Drinks
Saw some dirt
Other Beverages
Light and poppy music.
Work atmoshpere
Parking available
Lots of Drinks
Pleasant odor
Great Lakes Coffee field notes:
11
Not many seats
Outdoor Seating
Alcohol
Food
Vintage feel
No parking
-
Odd music
Picnic tables
No “To-Go”
Felt like factory
The Bottom Line field notes:
-
Basement feel
cement floors
outdoor seating
Small
hot
no food
jazz music
quiet
upbeat staff
clean
Dark
Students Working
Appendix B: Comparative Pricing Table
Biggby
Caffe latte
Capp
Americano
Red eye coffee espresso
12
Small
$2.99
$2.99
$2.19
$2.19
Medium
$3.59
$3.59
$2.89
$2.89
Large
$3.89
$3.89
$2.99
$2.99
Jumbo
$4.29
$4.29
$3.59
$3.59
Super Jumbo
$5.49
$5.49
$4.79
$4.79
Hazelnut iced coffee
Iced coffee
Café au lait
Brewed coffee
Frozen hot chocolate
Sandwiches
Turkey harvarti brogel
Ham and cheese brogel
Beef and cheddar asiago brogel
n/a
n/a
$2.59
$1.69
n/a
$2.49
$1.99
$2.79
$1.89
$4.95
$2.59
$2.09
$2.99
$1.99
$5.15
Regular
$3.39
$2.99
$3.09
Extra meat
$0.99
$0.99
$0.99
$2.69
$2.19
$3.19
$2.09
$5.45
$2.89
$2.39
$3.59
$2.29
$6.55
Great Lakes Coffee
Espresso
Espresso + water
Espresso + milk
Espresso + milk + chocolate
Cold press
Drip
Draft beer
German lager
Weiss
Coffee saison
Small
$2.75
n/a
n/a
n/a
n/a
n/a
Medium
n/a
n/a
$3.50
n/a
n/a
n/a
Half
$5.00
$3.00
$7.00
Pint
$9.00
$4.00
$14.00
Large
n/a
n/a
$3.75
n/a
n/a
n/a
Jumbo
n/a
$3.50
$4.00
$4.75
n/a
n/a
Super Jumbo
n/a
n/a
n/a
n/a
$3.75
$2.00
The Bottom Line
American
Café au lait
Cappicino
House Brew
Latte
Macchiato
Café mocha
Hot chocolate
Hot tea
Chai latte
13
Small
$1.00
$1.00
$1.75
$1.00
$1.50
$1.25
$2.50
$1.25
$0.75
$1.50
Medium
$2.00
$3.00
$3.00
$1.50
$2.50
$2.00
$3.00
$2.00
$1.00
$2.00
Large
$3.00
$3.50
$3.50
$2.50
$3.50
$3.00
$4.00
$3.00
$1.50
$3.00
Appendix C: Industry Analysis
Megan McGinnis
Database 1
Business Insights: Essentials (Specialty Coffee)
Interesting
and
potentially
important
information
A one ounce cup of espresso has less caffeine than a normal cup of coffee.
Why do you
believe this
information is
potentially
important to
the client?
I found this fact to be important because Great Lakes Coffee only sold coffee
until 11 am. Espresso however was served all day long. When I looked around
there were many people studying and working off of their laptops. I would
conclude that students prefer to have higher caffeinated drinks available to
them throughout the day to help them stay awake for studying purposes. I
thereby recommend that coffee drinks with higher caffeine be available all
day long.
Database 2
Marketline: Advantage (Biggby Launches 100th Store in Michigan)
Interesting
and
potentially
important
information
Biggby is opening their 100th store in Michigan and plan to open many more
within the next two years throughout the U.S.
Why do you
believe this
information is
potentially
important to
the client?
The article states that they are contracted to open 73 more locations within the
next two years. They seem to be growing at an alarming rate reaching for their
goal to be the leading chain coffee shop. My concern is that if they grow too
fast they may oversaturate the market. Take Starbucks for example, you can
find a Starbucks anywhere. On “the hill” (a shopping center) in Allen Park,
Starbucks has 3 locations. Oversaturation makes the brand a little less special
and less exclusive. I conclude that Biggby should continue to expand but be
conscious of oversaturating the market.
Daniel Keenan
Database 1
The Sydney Morning Herald (Sydney, Australia).
Interesting
and
potentially
important
14
This report reminded me of Great Lakes Coffee because they have both coffee
and beer. I found it interesting that this type of coffee shop was in demand in
other parts of the world. In this case it was the Baron Coffee and Small Bar in
Australia. This shop was filled with small benches and tables. It is a nice
information
small place to go if you’re looking to go have a few drinks or a cup of coffee.
Why do you
believe this
information is
potentially
important to
the client?
This information is important to the client because it shows that coffee shops
that include alcohol in their menu are booming all over the world. This shows
that what they have going is currently in trend. Also the Baron Coffee shop
had small benches and tables which sounds identical to the Great Lakes
Coffee shop right here in Michigan. Also the Great Lakes Coffee shop is
great for a few drinks in a nice atmosphere, its not a place to go rage or party
all hours of the night, much like The Baron Coffee and Small Bar in
Australia.
Database 2
Williams, Holly . The Independent [London (UK)]
20 Feb 2010: 4.
Interesting
and
potentially
important
information
This aptly named coffee bar that they talk about in the article is just buzzing
with life. It is said to be a good evening spot too. This coffee shop happens
to be in London, obviously they do some of the same stuff we do when it
comes to coffee.
This information is important because it is said that the coffee shop over in
London is just buzzing with life. This is very similar to Bigby Coffee which
seemed as if it was full of life as well because it had such a great atmosphere.
The fact that it is a good evening spot relates again to Great Lakes Coffee
because that can be an evening spot as well as a good place to grab a cup of
coffee in the morning. It is mentioned that it is an aptly named place, which
is usually an intelligent name. This is important because Bottom Line Coffee
is somewhat of an intelligent name to me.
Courtney Bishop
Database 1
Euromonitor International
Interesting
and
potentially
important
information
Low stockpiles in the coffee industry are leading to high prices. Colombia,
which is the world 2nd largest coffee provider in the world, saw its largest
outbreak of crop damaging fungus in 25 years. Furthermore, Brazil, who is
the world largest coffee provider, was expected to offset this, but could not
due to lack of rainfall. “But in the meantime US stockpiles were at 10 year
lows, down 35% to 2.01 million bags according to ICE Futures. All of this
comes as consumer demand for coffee is expected to continue to rise.”
Why do you
believe this
information is
potentially
This information is potentially important because it effects the coffee industry
as a whole and will also effect the small coffee houses that are potential
clients to our marketing class. This data shows that due to the low stock piles
that prices will rise, which may make it more difficult for small companies to
15
important to
the client?
obtain the large amounts of coffee that they may need to meet demands. With
high demands, and high prices, coffee houses are forced to raise their prices to
break even which can result in unhappy customers or loss of business.
Knowing the industry report on the low stockpiles can help companies predict
how they must tackle this problem for future business.
Database 2
IBISWorld US
Interesting
and
potentially
important
information
The healthy eating trend is causing people to shy away from coffee shops due
to their fattening drinks and unhealthy products. During the recession coffee
shops where hit hard, “This caused high-priced coffee drinks and other
nonessential snacks to lose the battle over people's shrinking budgets.”
However, companies like Jamba Juice experienced growth due to their appeal
as “healthy” and the recent trend is for companies to offer healthy options.
“Despite any long-term aggregate declines in healthy eating, consumers are
now more aware of the health issues associated with fatty foods and are
increasingly going out of their way to avoid them.”
Why do you
believe this
information is
potentially
important to
the client?
This information is important to client because they must realize this trend in
society. If they disregard this trend and offer fattening drinks consumers will
find healthier options elsewhere. The industry reports goes into more detail
stating that the trend to be healthy will decrease, but people will still be more
conscious of it. This being said, small coffee companies must appeal to those
customers by offering alternative to the normal drinks. Biggby for example,
offers lower calories alternatives to almost all of their drinks. Smaller
companies must be able to compete by also providing similar options.
Patrick Abraham
Database 1
Global Market International Database
Interesting
and
potentially
important
information
Coffee has traditionally received bad press as a blood-pressure-raising fiend
to be avoided by those suffering from heart disease, but its bad reputation is
about to turn a corner. Polyphenols are a class of plant chemicals which have
been associated with heart disease and cancer prevention, as well as being
attributed with anti-ageing properties. The good news for coffee
manufacturers is that it is found in high concentrations in green tea and coffee
Why do you
believe this
information is
potentially
The client can find yet another piece of information to concentrate on in order
to sell to the consumer. When you take in to account the high level of health
conscious people in America today, being the one who is pointing out some
helpful benefits of coffee when it’s only the negative effects people ever hear
16
important to
the client?
about can make the client’s shop be the one that public associates with health
and make the product seem better than the competitors.
Database 2
IBIS World
Interesting
and
potentially
important
information
After surging over the past decade, the Coffee and Snack Shops industry
experienced a major slowdown in 2009 due to a struggling economy and, to a
lesser extent, changing consumer tastes. Over the five years to 2012,
IBISWorld estimates revenue will grow at an average annual rate of 1.2% to
$27.8 billion. After revenue declined 6.6% to $25.3 billion from 2008 to
2009, it began its upward climb in 2010 and 2011, with growth of 3.0% and
3.1%, respectively. In 2012, industry revenue is expected to continue its
rebound, with an increase of 3.4%.
Stores will add high-margin and healthy items to their menus to aid growth
The Coffee and Snack Shops industry was a victim of the weakened economy,
rapid rise in unemployment and, to a lesser extent, society's rising awareness
of the health risks associated with diets high in fat, salt and sugar. Despite
these obstacles, the industry has responded to changes in consumer
preferences, supporting revenue growth. Over the five years to 2012, revenue
is expected to increase at an average annual rate of 1.2% per year. Industry
revenue declined 6.6% to $25.3 billion in 2009, but began its recovery in
2010 and 2011 when revenue grew 3.0% and 3.1%, respectively. In 2012,
industry revenue is forecast to grow 3.4% to $27.8 billion.
Consumers who continued to purchase coffee and snacks during the recession
bought lower-priced items than they would have prior to the recession, like
opting for a plain cup of coffee instead of springing for a cafe mocha at
Starbucks. This trend has forced coffee and snack shop chains to compete
with each other to convince consumers that they can get the most bang for
their buck at their particular establishment. As a result, competition has
intensified, with coffee and snack shop chains focusing on taking market
share from each other rather than trying to win a larger share of a growing
market, as was the case in years past.
Many operators have expanded their menu options to ensure that they can
retain a large portion of their customers' snack-food dollars. Dunkin' Donuts
introduced limited-time specials on coffee in the New York Tri-State area,
offering 99-cent lattes all day to win over some of Starbucks' customers.
Dunkin' Donuts now offers a wide range of espresso drinks and other flavored
coffees. Conversely, Starbucks now sells breakfast sandwiches and hot
paninis.
-------------------------------------------------------------------------------
17
This shows just how many factors lead into the buying habits of the
consumers, but namely the economic factors. The client will have to be vary
aware of the area that the shop is located in and how it that areas economic
status can affect the clientele and then can lead them to cater accordingly. I
would recommend that in order to grab the largest part of the market then they
need to not only specify in the more upscale products they also need to have
some specific value products that they can promote more in times of slower
economic times.
Appendix D: Market Segment Interview Classifications
Segment (#1. Comfort Connoisseurs)
Resp. #
Evidence for membership in this segment
3
Studious, comfort, young 20’s, frequents often, busy.
4
Motivated, coziness, young 20’s, frequents often, goal oriented.
Segment (#2 Conscious Coffee Drinkers.)
Resp. #
Evidence for membership in this segment
1
In their 20’s, convenience, budget friendly, on-the- go, busy
6
In their 20’s, easy going, budget friendly, resourceful, multi-tasker
8
In their 20’s, budget conscious, multi-tasker, busy
18
Segment (#3 Loyal Followers.)
Resp. #
Evidence for membership in this segment
2
In their 20’s, quality, loyal, knowledgeable, price inelastic, enjoyment
7
In their 20’s, loyal, enjoy quality drinks, price inelastic, utilize the
space
9
In their 20’s, like to spend time in coffee shops, know what they like,
enjoy the routine of getting the drinks, quality
19