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JENNIFER BALINSKI & NICHOLAS WINTERS. MARKET OVERVIEW Economy Solid (as it relates to this market) 25 universities and colleges in London 64 new offices.

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Presentation on theme: "JENNIFER BALINSKI & NICHOLAS WINTERS. MARKET OVERVIEW Economy Solid (as it relates to this market) 25 universities and colleges in London 64 new offices."— Presentation transcript:

1 JENNIFER BALINSKI & NICHOLAS WINTERS

2 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

3 COMPETITION Vending Machines Coffee Shop Machines Coffee Shops Convenience Stores and Mobile Stores In-home Coffee/Te a KafevendCosta Express Costa Coffee Tesco ExtraKeurig ExpresscafeCaffe NeroFood trucksCoffee beans cartsGround coffee Coffee shop brands

4 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

5 StrengthsWeaknesses -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

6 OpportunitiesThreats -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

7 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)

8 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

9 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

10 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 year olds are drinking coffee each day (2011) 14% of college students drink more than 3 cups/day

11 TARGET AUDIENCE Media Consumption social networking: 23% of ALL UK-users time online television: 35% of daily media consumption for UK users 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

12 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

13 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

14 MARKETING MIX Public Relations Social Media Events SEO & AdWords Advertising Tube advertising: print App

15 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

16 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

17 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

18 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)

19 SOURCES rising-stars-of-2011.thtml hours-week.html BcAzg https://learn.bu.edu/bbcswebdav/pid dt-content-rid _1/courses/14sum1comcm738sa1/Coffee%20Shops%20UK- %20Executive%20Summary.pd

20 SOURCES market-reports/cmr10/uk/ feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms %2Fs%2F0%2F16ff9edc-e026-11e3-b feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_refererhttp://www.ft.com/intl/cms/s/16ff9edc-e026-11e3-b feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms %2Fs%2F0%2F16ff9edc-e026-11e3-b feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer= videos-and-vending-machines


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