Select edits from a recent research project used to inform a hypothetical student brief along for teaching brand building including new product development (NPD) and activation.
Students are asked to evaluate and utilise this research into the current coffee sector before proceeding to create draft strategies to help achieve our hypothetical coffee brand (Brand X) to achieve their vision - bringing it to life by creating a brand strategy – creative platform, creative brief and integrated communications approach that can include activation concepts:
Created by Karl Aussia | creativeunion.net
Prezentare Brandfluence 2023 - Social Media Trends
Karl Aussia academic brief: coffee brand building research
1. KARL AUSSIA
Insight. Strategy. Communications.
karl@aussia.com +44 (0) 7712 191 902
COFFEE SECTOR RESEARCH
EDITS FROM ACADEMIC PROGRAMME
18.09.17
2. I find new
ways of
connecting,
people,
places and
ideas.
I’m a creative strategist, researcher and
qualitative insight specialist with broad
experience of working across multiple
communication channels on behalf of world-
leading communications agencies, brands,
media owners, creative industry and cultural
organisations.
I believe the most powerful communications
are founded on deep human understanding,
and through the application of insight-lead
strategy married to outstanding creativity.
I’ve a gained a strong reputation for re-
energising qualitative research and thought
leadership sometime published under the
company banner of creative.union.
Beyond communications and storytelling, I’ve a
growing focus on building loyal fandom by
defining brand purpose.
ABOUT KARL AUSSIA
2
3. “Super
charging
the 5th wave
of coffee
business”
3
Select edits from a recent research project used
to inform a hypothetical student brief along for
teaching brand building including new product
development (NPD) and activation.
Students are asked to evaluate and utilise this
research into the current coffee sector before
proceeding to create draft strategies to help
achieve our hypothetical coffee brand (Brand X) to
achieve their vision - bringing it to life by creating
a brand strategy – creative platform, creative brief
and integrated communications approach that can
include activation concepts:
THIS DOCUMENT
The vision challenge:
Brand X is ‘to be the recognised coffee expert
most loved and trusted by consumers - by
leading innovations and leveraging the brand
across all channels’.
5. UK COFFEE OUTLET MARKET OVERVIEW (2016)
5
22,845 estimated outlets
6% growth in outlets
12% outlet turnover growth
After 18 years of continued growth, the coffee shop market is one of the most successful in the UK economy
and is set to grow to 32,000 outlets with turnover of £16 billion by 2025, and outnumber pubs by 2030 as
coffee shops become ‘the new local’.
The global coffee industry is entering a new ‘5th Wave - The Business of Coffee’, This encompasses a
combination of all 4 previous waves - Tradition, Chains, Artisan and Science - where high quality boutique
chains will be a major feature going forward. Major operators are already adopting advanced business
practices to deliver authentic, artisan concepts at scale.
Costa, Starbucks and Caffè Nero remain UK leading chains with a 53% outlet share of the coffee shop market.
Market leader Costa operates 2,121 UK outlets, Starbucks 898, and Caffè Nero operate 650 outlets.
£8.9btotal annual turnover
SOURCES: Allegra World Coffee Portal. Project Café2017 UK . Sept 2017
Mintel. Grande growth: UK coffee shop sales enjoy a growth high Oct 2016
65%
of Brits have visited a
coffee shop in the past
three months
73% of coffee shop usage is by
consumers aged 16-24 years
6. FAST GROWING TRENDS
A revolution and growth in speciality coffee has
been lead by smaller, independent ‘artisan’
farmers, roasters and retailers, creating an
appreciation for great-tasting, speciality coffee
that’s now becoming a mainstream phenomenon.
Ahead of the game - discerning independent,
artisanal cafes are now seeking out specialist milks
and filtered mineral waters that lend themselves
to higher premium coffee.
One of the fast growing areas in beverage FMCG
is the RTD (ready-to-drink) segment. In the US
cold brew coffee, now being imported to the UK,
has experienced dramatic growth of 115% in the
past year (2016) with 24% of consumers reporting
they are drinking it.
Nitro coffee is borrowing equities from beer
servery while bartenders are using coffee.
6
Cool Hipsters
Partly driven by the coffee
obsessed NYLON (New York/
London) Hipster movement,
Cold Brew coffee is fast
becoming a cult product.
Starbucks Nitro
Borrowing equities from beer,
Starbuck have introduced Nitro
coffee created by adding
nitrogen to cold brew coffee,
resulting in a drink with a
naturally creamy mouthfeel
Alco-coffee
A new spate of award winning
coffee liqueurs launch in the
UK, part of the craft liqueur
trend set to sweep Britain.
Califia Nitro
Vegan, dairy-, GMO-, and
carrageenan-free. 3 Flavours
served in futuristic aluminium
bottles – latte, mocha, and New
Orleans
SOURCES: Coffee Tasting Club. Coffee Trends 2017. Oct 2016
Theieline. com. Califia Nitro Cold Brew. June 2016
Fortune. Why Craft Liquor Is the Next Big Thing. Oct 2016
The Telegraph. Tia Maria, meet Mr Black. Nov 2016
7. DEVELOP IDEAS AROUND CATEGORY, COMPETITORS & NPDs E.G.
7
NEW CATEGORIES & SERVICES
Similar to the gin sector exploring better
quality tonic waters, the premium end of the
coffee market is now exploring all the
ingredient elements that go into making
coffee.
Meanwhile coffee itself is coming to the fore
as an ingredient not only in cakes and cocktails
but also in savoury foods and beauty products.
Brand X needs to think holistically about its
ecosystem at every level including resourced
products used to make coffee products and
see where it could make inroads into owning a
collection of these. It also need to experiment
with knowledge sharing to test whether this
could be monetised like ‘Know How’ by PC
World.
It could perceive itself as an ingredient brand
and develop new categories and lifestyle
communications outside of its traditional
range, partnering with complementary brands.
?
8. NPDs & BRAND STRETCH – WHAT IF?
We created a pro-range of ingredients: to create
the ultimate in premium coffee ?
8
We borrowed the equities of single malt whisky:
to create single-origin coffees?
BrandX
How far can it go?We could become more of an ingredient brand:
involving the brand in TV shows like ‘The Great
British Bake Off’ that command enormous
audiences, and with famous chefs like Jamie
Oliver fill stadia with their cookery demos.
10. AREAS OF RESEARCH FOR CONSUMER SEGMENTATION
10
NEEDS ANALYSIS / KEY INFLUENCES / RITES & RITUALS / LANGUAGE / ACCESS POINTS /
FUNCTIONAL & EMOTIONAL BENEFITS ETC
DEMOGRAPHICS PSYCHOGRAPHICS BEHAVIORAL
Age PersonalityGeography
Ethnicity
Status
Income
Gender
Values
MediaLifestyle
Traits
Preferences
Semiotics
Usage
Frequency
Spend
ProcessCulture
Sexuality Beliefs Identity
Preferences
11. Millennials and their ‘Z’ cohort’, the world’s
largest consumer group, are driven by social
causes especially issues of sustainability while
paradoxically obsessed with presenting
themselves online like the big name global
brands they love to consume.
Brought up during a period of relative peace and
prosperity, those in the UK are currently forecast
to be the first generation since the 1950s to fail
to do better than their parents.
Globally outward looking and motivated by
innovation, they believe technology can make a
better world. They leverage social media to
expose wrongdoing and to draw attention to
social issues; aligning with brands that enable
them to express opinions and become active
advocates of the causes they believe in.
GEN Z & MILLENNIALS
11
Living and giving
Millennials prefer crowd
funding to direct donations
where they can see and
promote tangible results.
SOURCES: Business Insider. British millennials are £2.7 trillion poorer. Jan 2017
Achieve. The Millennial Impact Report. 2015
Giving time & money
84% of employed
Millennials made a
charitable donation in
2015 and are most likely
to get involved with
causes when offered a
range of volunteer
opportunities.
Green paradox
Primark announces it’s
‘green bag’ credentials
while selling masses of
low-cost, landfill fashion.
12. MILLENNIAL CONSUMERS
buy brands monthly that support a
good cause, up 47% in 2 years.
12
HOW NOT TO MARKET TO THEM
47%
88%
78%
71%
85%
7/10 consider themselves social
activists.
correlate purchase decisions &
recommendations with the social
good they make.
actively promote brand
products/services if there’s a cause
behind them, up 34% since 2008.
feel brands should address
social issues.
believe companies have the power
to influence societal change.
13. ECONOMIC OUTLOOK: GEN Z & MILLENNIALS
13
A report from the Resolution Foundation dovetails with a Bank of England study that identifies people under
age 45 are already 10% poorer today than they were in 2007.
Millennials have been robbed of the ability to do better than their parents because of a couple of key decisions
taken by their parents' generation. Those decisions were:
- To keep interest rates near zero after the great financial crisis of 2008.
- To abolish defined benefit pension plans in favour of defined contribution plans.
14. The over 50’s now account for a third of the
global population, and owns 80% of its wealth
(69.7%: UK household, equiv: £6.2 trillion).
Retiring no longer means winding down,
increasingly wealthy, active and mobile, older
people now bring huge cultural and economic
benefits, presenting previously unseen role
models to society.
Now the mature urban urbane, who invented
youth culture spanning Rock Roll, Hippy, Disco,
Punk, New Wave and Rave are taboo-busting
what it means to age by challenging ‘ageist’
messaging, forcing brands to listen and rethink
their tone.
A Mintel survey found 37% of the 50-68 age
group felt excluded in advertising, with 46 %
saying people are stereotyped as old at 50.
GEN X & BOOMERS
14
Aging badasses
Older women are shaking up
fashion. Charlotte Rampling 68,
Helen Mirren 69 and Tilda
Swinton, 53 are all retained as
house models to beauty brands.
96 year old interior designer Iris
Apfel, has become a
phenomenal global fashion icon
SOURCES The Telegraph. Over 50s women spent most on make-up. April 2015
Saga. Over 50s contribute more than 6 trillion to the UK economy. Jan 2016
Cosmetics Business. Men’s Market: Overview and Future Predictions. June 2015
Advance Style
In 2015, British women
spending on beauty rose 4.9%
but the biggest growth was in
men’s skincare increasing to an
estimated £911 million pa.
Nespresso have tapped the
Clooney effect’, while maturing
idols like David Beckham and
ethnic fashion models are
leading the charge on mature
style and visibility.
15. DEVELOP IDEAS AROUND CUSTOMER INSIGHT & SEGMENTATION E.G.
15
REFRAME THE WAY YOU SPEAK & PORTRAY
DIFFERENT GENERATIONS
Conformist Millennials, the largest consumer
group on the planet don’t have the most
disposable income. They are increasingly
cynical and vocal about the way they are
described in media as narcissistic and lazy, and
also how they are so transparently and poorly
targeted via social media.
Meanwhile, richer taboo busting 50+ year olds
are still rebelling by reinventing aging. Young
people may be the highest consumers of social
media but the 50+ who invented the internet
are catching up.
Brand X needs to champion each generation
helping then overcome media stereotypes.
They need to invite youth into the brand –
making it their own and helping them achieve
their life goals. And, similarly they need to
celebrate mature people and cater for their
specific indulgences and leisure needs.
?
POTENTIAL YOUTH THEMES
Value orientated products that feel prestige
Experiential rewards
Participation in brand causes
Eco transparency & challenge prizes
Socialise commerce
Mindfulness
POTENTIAL MATURE THEMES
Seeking out the new ultra mass-premium
Connecting with and contributing to real society
Leisure & wellness pursuits: coffee & beauty
Taboo-bust stereotypes of aging
17. THE RISE OF ETHICAL BRANDS
In a ‘post-Bling’ world following global recession,
corporate scandal, and where 1% of the world’s
population hold 80% of its wealth, polarised public
opinion is opening debate, challenging us all to
reassess our ethical values and expectations.
Increasing public awareness of nuanced debate
around issues of gender, truth, sustainability, race
bias, BREXIT, data use and privacy are all themes
making impact across sectors and culture at large
today.
Social purpose, use of big data, holistic wellness,
and above all environmental sustainability, are all
big issues driving Brand Xehaviour today.
17
“Our research shows that
54% of consumers are on
the tipping point of
purchasing sustainably.
There is a huge economic
opportunity for businesses
that are able to build brands
with real purpose which
consumers care about”
Keith Weed.
Chief Marketing & Communications Officer, Unilever.
18. Research published by the UK Government identified that the ethical standards of retail companies and the
products they sell increasingly influences consumer choice.
Ethics matter to at least ‘a little’ to more than four in five adults (83%) and ‘a great deal/ fair amount’ to half
(49%) clearly outweighing the indifferent. Barriers to to ethical purchase are prices and accessible, reliable
information.
SOURCES: UK Government, Department for Business Innovation and Skills. Views on ethical retail. June 2014
ETHICAL CONSUMPTION TREND
18
19. ETHICAL COFFEE TREND
For the last 12 years the retail sales of Fairtrade coffee in the UK increased nearly 10 times.
Although not the biggest coffee consumers in the world, the UK remains the 9th largest coffee importer, and
makes huge impact on the global coffee market. The 2nd biggest player in UK coffee shop business is one of the
largest purchasers of Fairtrade coffee products, as well as many of the independent coffee shops
19
80%of the world’s coffee is produced by
smallholders
SOURCES: Mintel. Grande Growth: UK Coffee Shop Sales Enjoy a Growth High. April 2017
87% of coffee drinkers try to dispose of their
packaging waste in recycling bins
58% of coffee drinkers would like a discount for
using their own travel mugs.
40%of coffee drinkers wouldn't mind being
charged extra for 100% recyclable cups
20. As consumers increasingly seek out brands with purpose aligned to their own values, brands are investing in
local and national initiatives.
Youthful brands targeting Millennial mindsets are engaging in weighty topics that champion causes and drive
social change– from sustainability, gender to body image and beyond.
COLLABORATIVE SOLUTIONS & CAUSE MARKETING
20
Waitrose localised CSR
Shoppers receive tokens to place
in a box relating to 3 local
causes. The more tokens a cause
gets, the bigger the donation.
Pampers partner UNICEF
Since 2006, the partnership has
helped eliminate Maternal and
Neonatal Tetanus in 15 countries.
Tom’s One for One
Tom catapulted to fame
following their promise to
donate a pair of shoes to those in
need overseas for every pair
purchased.
Collaborative sustainability
A shift in the collaborative
relationship between customers and
retail brands is occurring, especially
the removal of single use plastics
from reusable packaging, through
selling out of date and disfigured
foods, to product personalisation.
Patagonia flipped Black Friday
Patagonia attracted worldwide
coverage and record sales by
donating 100% sales profit to its
core causes on Black Friday also
generating a legion of new fans
subscribing to its newsletters and
activities.
21. DEVELOP IDEAS AROUND MACRO-TRENDS & SOCIAL ISSUES E.G
21
WIN ON TRUST, OPENNESS & AUDIENCE
PARTICIPATION WITH PURPOSE
Ethics sell, and greater digital transparency is
the future. Brand X needs to be clear on how it
connects all its activation, experiential and
CSR programmes united under brand purpose.
It needs to establish tenets for ethics and know
how to apply these as principles across all
areas of the fast-changing business landscape.
Rome cannot be rebuilt in a day but the public
will value transparent commitment so long as
they can see results, and where possible,
participate in positive change.
BREXIT is a harsh topic that divides the nation
so communications must be finely attuned to
engender a sense of pride without implying
nationalism. Helping to build British business
will gain brand love. Coffee, seen as a
European phenomenon, has actually been
embedded in British culture since the Age of
Enlightenment and can reside at the heart of
the nation.
?
KEY THEMES
Initiating an ethical approach along the entire value
chain, and inviting the public into participate in
crowdsourced solutions and industry innovation
Inviting people to learn about and/or have a role in
the wider coffee industry under brand purpose
CSR as consumer facing marketing
Localised community building & social initiatives
New post-BREXIT British sensibilities & business
building that appeal to both sides of the debate.
Incorporating coffee into holistic wellness regimes
& experiences
Coffee personalisation in ways that drive
sustainability
22. We created coffee clubs ta linked satellite cafes
and home service: where the role of barista’ &
mixologists was to teach you, not just make you?
DEVELOP IDEAS FOR INTEGRATED EXPERIENCE E.G. WHAT IF?
22
We partnered with world-leading smart tech &
engineering brands: to build the future of
personalised coffee makers and vending?
Where your favourite
types of coffee serve
could be automated into
your mobile for café &
home?
You could personalise your blend & roast: and
have it delivered to your local café, store, home?
Where you get help -
career training, setting up
your own independent
franchise, or can take
challenge prizes to
innovate the industry?
SOURCES: PR Newswire. Research and Markets - Global Smart Coffee Maker Market Growth. Jan 2017