Benjamin Mascioli - La Colombe: The Draft Latte (A Consumer Behavior Case Study)
1. LA COLOMBE: THE DRAFT
LATTEA CONSUMER BEHAVIOR CASE STUDY
Benjamin Mascioli
MKT313 – Consumer
Behavior
Spring 2020 Final Project
West Chester University
3. COMPANY HISTORY
(PRE-2015)
Founded in 1994 by
Todd Carmichael and JP
Iberti
Operated a single
coffee shop and
roastery in Rittenhouse
Square
Chose Philadelphia due to
proximity to other major
cities
Low cafe saturation at the
time
Two divisions: Retail
(cafes) and wholesale
La Colombe is
considered to be one of
the pioneering figures
in the third-wave
coffee movement
4. A QUICK RECAP OF SOME COFFEE
INDUSTRY TERMS
1st Wave Coffee
Began in late 1800s after the
invention of vacuum sealing
Ground coffee sold in bulk in
grocery stores
Folgers, Maxwell House
1st Wave Target Market:
Traditional, full nest, middle-lower
income households, quantity and
low cost
2nd Wave Coffee
Began in late 1960s
Shift in focus from mass market to
specialty coffee
Peet’s & Starbucks - Establishment
of the “coffee shop” business model
2nd Wave Target Market: Younger,
fewer children, value in-store
experience
3rd Wave Coffee
Began in early 1990s as result of
collapse of ICA
Direct Trade between coffee
companies in US and farmers
abroad
La Colombe, Intelligentsia,
Stumptown, Counter Culture
3rd Wave Target Market: Young,
few/no children, value craft quality
and ethical sourcing
5. 2015:
LA
COLOMBE
SHIFTS
GEARS
•Controlling share in company purchased by Hamdi
Ulukaya (Chobani)
•Carmichael remains CEO
•Iberti made President
New Ownership
•Movement away from purely 3rd Wave business to
incorporate 2nd wave characteristics (scale)
Rebranding effort
and expansion
begins
•Foamy, creamy coffee-and-milk beverage available
on-tap in La Colombe cafes
•Positioned as a response to surge in nitro cold brew
popularity
Todd Carmichael
develops the
Draft Latte
•First canned products hit shelves in 2016
•Third revenue stream for the company
•Draft Latte is RTD flagship
Ready-to-Drink
(RTD) Division is
Established
8. Target Market Ideal Self-
Concept
Aspirational
Moving up in social status
Discerning
Educated product buying
decisions
Sophisticated & Worldly
Crafted, premium products
Ethical sources
9. PACKAGING
Minimalist graphic design
Simple backgrounds, bright
colors, bold fonts
Minimalism is associated with
sophistication
Sleek, narrow can
Suggests healthy ingredients
(No Sugar Added)
Allows market to make an
educated purchase choice
Lipguard tab
Unique, proprietary can design
Associates product with
innovative concept
10. A SUSTAINABILITY
SUGGESTION
Target market values environmental
sustainability
Willing to pay more for sustainable products
Also major component of La Colombe’s Business
Model
Lipguard tab is difficult to recycle
Consumers either have to cut plastic lid off to
separate materials or throw in the trash
Creates unnecessary plastic waste
Is there a better material for the tab?
Can be foregrounded in marketing materials
11. SUBCULTURE MARKETING: COFFEE
CULTURE
No formal focus grouping data has been published
Monitoring product reviews & blogs reveals two broad groups
Influx of new customers – Casual Coffee Culture
Loose relationship with coffee culture
Overwhelmingly positive about Draft Latte and La Colombe
Largest group
“Old guard” – Coffee Enthusiasts
Deeper relationship with specialty coffee culture
Some feel that La Colombe has given up its artisanal quality in pursuit of business scaling
Developing an RTD product to attract this section of the market would be beneficial
13. SITUATION 1: DRAFT LATTE AS
PREMIUM ALTERNATIVE
La Colombe Draft Latte ($2.99)
Strengths
•Perceived product quality
•Sophisticated brand image
Weaknesses
•Lower distribution
•Higher price may intimidate some customers
Starbucks RTD Frappuccino ($1.99)
Strengths
•Brand recognition
•Huge distribution
Weaknesses
•Lower perceived product quality (Lots of sugar,
added water)
•Package design is not as eye catching
14. SITUATION 2: DRAFT LATTE AS
ACCESSIBLE OPTION
La Colombe Draft Latte ($2.99)
Strengths
•Accessible brand image
•Range of flavors
Weaknesses
•Poor performance among hardcore coffee enthusiasts
•Milk content may not appeal to all consumers
Stumptown Nitrogen-Infused Cold Brew ($4.99)
Strengths
•Higher caffeine content
•Perception of quality
Weaknesses
•Can design not as modern
•High price is off-putting
15. SOME
CLOSING
NOTES
La Colombe’s post-2015
expansion, fueled by the
Draft Latte, has been
instrumental in widening
the market for artisanal
coffee products
The company is poised to
become a major industry
player within five years
Expanding cafes throughout
US
Will they make an
international push?
