IDEA: CoffeExplore is coffee networking with like-minded people which will be done by E-Marketing Innovation.
Perspective: Local Lion is positioned among the most popular coffee shops in Boone. The three best-known coffee roasters in Boone are Local Lion, Espresso News, and Hatchet Coffee. But now Starbucks entered the league and captured loyal customers of Local Lion. Local lion has competitive prices of beverages but to attract loyal customers I propose a unique alternative which CoffeExplore.
20. NOV 2018
Content customization: Making
overall web content more friendly
and persuasive to boost ‘call to
action’ effectiveness of site
DEC 2018
Embedding interactive elements
(like-minded people) to increase
customer participation in product /
brand extensions through contests,
likes, discounts
JAN 2019
Increasing brand reach through
suggested affiliate marketing,
banner exchange initiatives and
submissions to relevant web
directories & niche search engines
MARCH 2019
Leveraging web-analytics reports to
enhance overall website
effectiveness and customer
behaviour adaptability
MAY 2019
Enhancing student, tourist and local
community engagement on
Linkedin,Facebook and Instagram
CoffeExplore Action Plan: E-Marketing Innovations
Editor's Notes
I will present Local Lion Marketing strategies to capture the market taken away by Starbucks.
Coffee Retailing industry : Local Lion wants to keep its business steady and loyal customers.
Problem Statement - Solve the issue
Local Lion sells diverse variety of beverages and its famous among local communities. It is the first cafe to start the drive- through to serve multiple customers at the same time. The location of the cafe is also convenient to students but starbucks is opened now at 1.6kms away. It offers competitive prices and is partner with AMB and a brewery in a college town was an especially advantageous campaign. Given that much of the student population consumed large amounts of both coffee and beer. This partnership with AMB specifically reached the target audiences of both Local Lion and AMB, which included locals, students, and travellers alike. Weaknesses include that there is no machine to make coffee, less seating space, lack of social media engagement. To counter this , I will propose an alternative.
Innovation: Local lion must test new ways to stay competitive. These include new coffee blends, mobile payments, and express lines for improved service. All-day breakfast options are growing in popularity, and with many 24-hour locations, Local lion could benefit from a steady traffic of people seeking breakfast later in the day.
Healthier options: Though Local lion is known for its coffee and donuts, many of its lunch options are healthier than those of competing fast-food establishments. More marketing emphasis on in-store Health coach and fitness trainer will gladly help to plan meals, juice cleanse program and fitness diet plan.
The moderate cost of doing business is associated with the variability of the actual cost of establishing and maintaining operations in the coffeehouse industry.These external factors enable smaller firms to do business and compete against Starbucks. In Porter’s Five Forces analysis model, this force refers to the effect of new players or new entrants in the industry. In this business case, the external factors contribute to the moderate threat of new entrants against Local lion include high cost of brand development , switching costs are low and distribution channels are easily available.
In this component of the Five Forces analysis model of the business, the bargaining power of buyers is among the most significant forces affecting the company. Based on the low switching costs, customers can easily shift from Local lion to other brands. In addition, the high substitute availability means that customers can stay away from Local lion if they want to, because there are many substitutes like instant beverages from vending machines. These strong factors overshadow the fact that individual purchases are small compared to the company’s total revenues. The small size of individual purchases equate to the weak influence of individual buyers on the business.
The moderate size of individual suppliers is an external factor that imposes a moderate force on Local Lion. However, the high variety of suppliers weakens their bargaining power. For example, suppliers have various strategies and competencies that they use to compete against each other, with the aim of gaining more revenues by supplying more materials, such as coffee beans.The bargaining power of suppliers is further weakened because of the large overall supply. For instance, there are many suppliers of coffee and tea around the world. This external factor limits the influence of individual suppliers.
This component of the Five Forces analysis indicates that substitutes have strong potential to negatively impact Local lion Coffee’s business. The high availability of substitutes makes it easy for consumers to buy these substitutes instead of Starbucks products. For example, substitutes like ready-to-drink beverages, instant beverage powders and purees, and food and other beverages are readily available from various outlets, such as fast food and fine-dining restaurants, vending machines, supermarkets and grocery stores, and small convenience stores. In addition, the low switching costs further strengthen the threat of substitutes, as it is easy for consumers to buy substitutes instead of Local Lion products.
The large number of firms is an external factor that intensifies competitive rivalry. Local Lion has many competitors of different sizes. In relation, the population of competitors is moderate varied in terms of specialty and strategy. In this Five Forces analysis of Local Lion, such moderate variety further strengthens the level of competition in the industry. In addition, competition is strengthened because of the low switching costs, which are the disadvantages to consumers when shifting from one provider to another.
Now this perceptual map analyses the positioning of Local Lion and its competitors.Local lion is not that famous as compared to Starbucks. Local lion lacks attractiveness, unique features or niche experience to capture new customers.
I will suggest market penetration because we can capture the market with existing product providing new experience and service.
Now I will suggest three alternatives for Local Lion to penetrate into the market. Namely , CoffeEcstasy ,CoffeExplore and CoffeEuphoria.
Introduce book clubs and quiet student centre
At Night play live music
Local lion must test new ways to stay competitive. These include new coffee blends and healthy options. All-day breakfast options are growing in popularity, and with many 24-hour locations, Local lion could benefit from a steady traffic of people seeking breakfast later in the day. Though Local lion is known for its coffee and donuts, many of its lunch options are healthier than those of competing fast-food establishments. More marketing emphasis on in-store Health coach and fitness trainer will gladly help to plan meals, juice cleanse program and fitness diet plan.
This will help Local Lion to create brand image in the minds of existing and new consumers. Engage customers in contests to share experience, pictures, check-ins on social media platforms and gift them free trip, discounts in café etc. This will increase the brand community for local lion. Through the presence on social media, we will make groups on Facebook, Instagram and Linkedin to engage like-minded people professionally or casually. This will create niche experience , build emotional connect and give happiness to the consumers over offline meet at the café.
I will recommend this idea as its unique concept. Moreover, concocting co-branding will build huge brand community capturing new consumers. This will help Local Lion to create brand image in the minds of existing and new consumers. Engage customers in contests to share experience, pictures, check-ins on social media platforms and gift them free trip, discounts in café etc. This will increase the brand community for local lion. Through the presence on social media, we will make groups on Facebook, Instagram and Linkedin to engage like-minded people professionally or casually.
On the basis of these three factors, we will evaluate the best alternative.
I will suggest the third alternative to Local lion as its unique idea and no coffee shop has incorporated this idea.This will create niche experience , build emotional connect and give happiness to the consumers over offline meet at the café.
ACTION PLAN for CoffeExplore
· Exposure: Engaging with new potential customers across different touchpoints of the brand
· Awareness: Enhancing people visitation numbers to the website
· Trust & Credibility: Gain a potential customer’s trust
· Consideration: Persuading potential customers to convert by engaging them in contests
· Advocacy: Marketing to customers after they've converted and build brand affinity
Referral:Leverage brand trust for effective cross selling & viral marketing to boost sales