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KeepCup Australia and US:
The University Market
This report is prepared by Raviv Bull, Krysten Gandhi, Olivia Kong,
Roy Ho...
2
Acknowledgements
KeepCup Consulting would like to acknowledge and thank the following individuals for
providing us with ...
3
Olivia	Kong	
Major:	Finance	&	
Opera0ons	Management	
Olivia	has	strong	a8en0on	to	
detail	and	constantly	seeks	to	
meet	...
4
Executive Summary
Purpose
Since 2009, KeepCup Ltd has been looking for ways to further engage youth with its mes-
sage o...
5
Table of Contents
Executive Summary...……........………………………………………………………………………………………….4
1. Introduction……………………………………………………...
6
List of Figures
Figure 1: Project Methodology
Figure 2: Primary and Secondary Data Sources
Figure 3: Responses from Univ...
7
1. Introduction
1.1 Background
KeepCup, the leading producer of the environmentally friendly alternative to disposable
c...
8
This report is designed to investigate the following points as agreed between KeepCup Con-
sulting and Project Sponsor, ...
9
1.4.2 Data Sources and Collection Methods
Data sources used for the purpose of this report include primary and secondary...
10
Melbourne	University	as	a	Case	Study	
This	was	notably	the	case	when	conduc2ng	market	research	on	cafes	and	residen2al	...
11
2. KeepCup’s Strategy in the Australian University
2.1 Business Relationships
This section will identify, discuss and a...
12
Desire for Future Partnerships
When asked whether there were existing discounts in place for KeepCup holders, KeepCup
C...
13
With regards to Figure 3, while all of the offices acknowledged that their expectations of
the product were met with re...
14
2.2 Previous Marketing and Promotional Strategies
In order to achieve the goal of increasing sales in the University ma...
15
2.2.2 Kill The Cup
KeepCup partnered with the Kill The Cup university challenge in 2014. The purpose of the
partnership...
16
KEY	TAKEAWAYS	
2.2	
•  KeepCup	 has	 had	 a	 highly	 successful	 rela2onship	 with	 the	 Melbourne	 University	
Sustain...
17
2.3 Key Findings from Survey Results
To determine KeepCup’s brand recognition, brand perception, and customer loyalty, ...
18
CUSTOMER LOYALTY
Figure 8
3-4	
%mes	a	
week	
Once	
a	month	
Once	a	
week	
Daily	
39.4%	
9.1%	
27.3%	
24.2%	
How often d...
19
Respondents were also asked what they would change about the KeepCup to deter-
mine any perceived inconveniences of the...
20
3. Expanding KeepCup’s Presence in the U.S.
University Market
3.1 Geographic Segmentation
3.1.1 U.S. Consumer Profile
S...
21
Facts	
50% (30 million people) of the
population over the age of 18
consume coffee daily.
Men and women drink the same
...
22
Given the assertion that young university students drink less coffee than working adults,
and the fact that most coffee...
23
3.2 Avenues for Entry
The strategies recommended for the U.S. and Australian university sectors will be funda-
mentally...
24
The competitive analysis presented in Figure 12 outlines the lack of comparable products
currently offered for sale at ...
25
Annual	fee	for	a	new	member	can	exceed$1200	(USD).	
Accoun;ng	for	all	other	customary	outlays	on	events	and	
ac;vi;es	o...
26
3.2.3 University Sustainability Offices
Entry via sustainability offices would enable KeepCup to establish a formal rel...
27
3.3 Regulation and Licensing
3.3.1 Collegiate Licensing Company
The Collegiate Licensing Company (CLC) is partnered wit...
28
3.3.2 Licensing Required for Residential Halls and Student Clubs
In the U.S. university market, licensing is required f...
29
4. Recommendations
4.1 Future Strategies in the Australian University Market
The results and findings section outlines ...
30
3. Posters around campuses:
● Design should clearly depict KeepCup product and brand name.
● Also act to advertise the ...
31
4. Draw from Kill The Cup campaign and provide discount codes
● Whilst recreating the Kill The Cup campaign is not appl...
32
4.2 Future Strategies in the U.S. University Market
Even though there are many similarities between the Australian and ...
33
As outlined in the report, KeepCup has the option to pursue three different strategies re-
quiring licensing from diffe...
34
Phase 2 - Sustainable Campus
After successfully integrating the product among university students through sales at
B&N ...
35
4.2.4 Further Recommendations - KeepCup for a Cause
Looking into the future, we believe KeepCup can increase sales by u...
36
5. Conclusion
With the university sector presenting a major avenue for increasing sales, KeepCup wanted
to not only exp...
37
Recommendations for the U.S. university market are focused on establishing distribution
channels and targeting optimal ...
38
6. References
1. 	 Can changing the way you think, change the way you grow? [Internet]. PwC; 2011
May [cited 2015 Oct 1...
39
17. 	 Thompson C. The 15 most sustainable U.S. cities [Internet]. Grist. 2009 [cited 2015
Sep 20]. Available from: http...
40
33. 	 Green Residence Halls Are Here: Current Trends In Sustainable Campus Housing,
The Journal Of College And Universi...
41
7. Appendices
Appendix 1 - Survey Results
42
43
44
Appendix 2 - Cafe Interview Question Guideline (Semi- Struc-
tured)
1. Have you heard of the KeepCup?
2. How often do c...
45
Appendix 3
A Forbes framework: 10 Qualities of a Successful Product in the USA
46
Appendix 4 - B&N Order Process:
The process of getting a product like the KeepCup into Barnes & Noble university book-
...
47
2) No -- we try to educate students/customers about sustainable purchasing, but don’t
have direct partnerships with our...
48
Appendix 7 - Project Charter
49
1
50
51
52
Appendix 8 - Data Collection Plan
KeepCup Consulting
Data Collection Plan
Olivia Kong 764970
Krysten Gandhi 639998
Ravi...
53
How can
KeepCup
Increase
sales in the
University
market?
2
1
1.1
Increase sales
in the
Australian
University
market.
2....
54
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source Data Collection Method
1.1.1.1 How can brand
awarenes...
55
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source Data Collection Method
1.1.2.2 How can
existing
relat...
56
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source
Data Collection
Method
2.1.2.1 What problems does
reg...
57
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KeepCup-Final

  1. 1. KeepCup Australia and US: The University Market This report is prepared by Raviv Bull, Krysten Gandhi, Olivia Kong, Roy Ho, William Haveckin Commercial in Confidence October 2015
  2. 2. 2 Acknowledgements KeepCup Consulting would like to acknowledge and thank the following individuals for providing us with their support in completing this project. Adam Katsonis, Brand Manager, KeepCup (Aus) Maura Yammouni, Senior Account Manager, KeepCup (Aus) Shireen Khadiwala, Executive Assistant, KeepCup (Aus) Gregory Lambert, General Manager, KeepCup (US) Mike Dilisio, Corporate Sales and Marketing, KeepCup (US) Austin Chia, Subject Director, University of Melbourne Andrew Jason Zur, Team Coach, University of Melbourne Disclaimer The University of Melbourne, its staff and participating students will bear no responsibil- ity for any loss or inconvenience arising to the client organisation and/or any third party which may arise through use of the data or recommendations from the Consulting Re- search Project and final report. If you have any questions regarding this report, please contact the Faculty of Business and Economics via e-mail, fbe-capstonestudies@unimelb.edu.au
  3. 3. 3 Olivia Kong Major: Finance & Opera0ons Management Olivia has strong a8en0on to detail and constantly seeks to meet all objec0ves of a project. Krysten Gandhi Major: Finance & Economics Krysten is a methodical and prudent worker who focuses on deadlines and maintaining a high standard. Raviv Bull Major: Finance & Economics Raviv is a strong leader who provides direc:on to the team as a coordinator. Liam Haveckin Major: Finance, Management & Italian Given his crea8ve nature and ability to look outside the box, Liam presents new ideas and approaches to those around him. Team Profile - KeepCup Consulting Roy Ho Major: Finance & Management Passionate and hard- working, Roy never gets too comfortable with his work and usually puts in effort beyond what is required.
  4. 4. 4 Executive Summary Purpose Since 2009, KeepCup Ltd has been looking for ways to further engage youth with its mes- sage of sustainability. As universities present the perfect marketplace in which to reach the student population, the question has become how can KeepCup increase sales in the Aus- tralian and U.S. university sectors? Scope & Methodology In Australia, as KeepCup is already an established brand the focus will be on examining new and improved ways to engage with university students. This involves a dissection of previous campaigns and business relationships in an attempt to examine how they can be improved and re-implemented in the future. Primary data collection for the Australian mar- ket was conducted by collecting surveys and interviews. Dissimilarly, KeepCup has not gained similar traction in the U.S, partly due to the extensive licensing regulations. Potential entry strategies have been devised to break into the U.S. university sector while targeting specific universities. For the U.S., phone interviews were used to obtain information regarding licensing and product requirements. Major Findings In Australia, the analysis of KeepCup’s business relationship involved three key areas: cafes, sustainability offices, and residential colleges. KeepCup Consulting discovered these rela- tionships can be further developed by engaging business partners in new ways, as well as the issue of brand awareness among Australian university students, an area which is also in need of improvement. Analysis of the U.S. market demonstrated the need to segment the market and take into consideration its vastly different coffee cultures. The main entry strategies developed were through Barnes & Nobles (B&N), residential halls and student clubs. A significant finding in the U.S. market was that displaying the logo of the target institutions is key in driving sales. Hence, it is recommended that CLC licensing be obtained if KeepCup truly seeks to break through into the U.S. university market. Furthermore, residential halls and student clubs, who represent a significant opportunity to increase sales, also requiring their own licensing. Recommendations & Conclusion For the Australian market, a detailed action plan covering one academic year is presented. The first phase looks to address brand awareness, while the second addresses business re- lationships and brand loyalty and the third phase focuses on residential halls. The U.S. recommendations detail a similar three-phase action plan to be implemented at the targeted universities in Seattle, Portland and San Francisco. Phase 1 outlines the need to firstly target B&N, phase 2 draws on the similarities with the Australian market and fo- cuses on increasing physical presence on campus and the ensuring final phase highlights the need to gain product popularity before engaging student clubs and residential halls. Finally, Phase 3 then targets the student club and residential hall population. The recom- mendations conclude with several key ways to engage the wider consumer market such as partnering up with charities like the Red Cross. Ultimately, the conclusion draws from the key findings and recommendations above. While it acknowledges the key limitations, the section outlines the need to consider the proposed action plans designed to increase sales in both university markets.
  5. 5. 5 Table of Contents Executive Summary...……........………………………………………………………………………………………….4 1. Introduction……………………………………………………………………………........………………………......7 1.1 Background………………………………………………………………………………........……………..7 1.2 Problem Statement and Purpose………………………………………………………........……..7 1.3 Project Scope..………………………………………………………………………………………...........7 1.4Methodology…………………………………………………………………………………………...........8 1.4.1 Diagrammatic Summary of Project Methodology……………………...........8 1.4.2 Data Sources and Collection Methods……………………...…………….............9 1.4.3 Methodological Scope and Limitations…………………….........................10 2. KeepCup’s Strategy for the Australian University Market……………………........................11 2.1 Business Relationships………………………………………………………………....……...……….11 2.1.1Cafes…………………………………………………………………………….....................11 2.1.2Sustainability Offices………………………………………………………………..........12 2.1.3 Residential Colleges…………………………………………………………………........13 2.2 Previous Marketing and Promotional Strategies…………………………....................14 2.2.1 Melbourne University Sustainability Pledge…………………………............14 2.2.2 Kill The Cup……………………………………………………………………………..........15 2.2.3 Reuse HQ…………………………………………………………………………….............15 2.3 Key Findings from Survey Results……………………………………………………………........17 3. Expanding KeepCup’s presence in the US college market……………………........................20 3.1 Geographic Segmentation……………………………………………………………...................20 3.1.1 U.S. Consumer Profile……………………………………………………………...........20 3.1.2 Target Locations……………………………………………………………....................22 3.2 Avenues For Entry……………………………………………………………...............................23 3.2.1 Barnes & Noble……………………………………………………………....................23 3.2.2 Residential Halls and Student Clubs…………………………………………….....24 3.2.3 University Sustainability Offices ………………………………………………….....26 3.3 Regulation and Licensing…………………………………………………………........................27 3.3.1 Collegiate Licensing Company……………………………………………………......27 3.3.2 Licensing Required for Residential Halls and Student Clubs...............28 4.Recommendations……………………………………………………………............................................29 4.1 Future Strategies in the Australian University Market…………………………….........29 4.1.1 Phase 1: O-Week and Advertising…………………………….........................29 4.1.2 Phase 2: Cafes and Sustainability……………………………..........................30 4.1.3 Residential Halls……………………………....……………………………..................31 4.2 Future strategies in the U.S. University Market……………………………....................32 4.2.1 Target Locations and Suitable Universities……………………………............32 4.2.2Licensing……………………………....……………………………....………………….......32 4.2.3 Avenues for Entry……………………………....……………………………................33 4.2.4 Further Recommendations: KeepCup for a Cause...............................35 5. Conclusion…………………………….........……………………………....……………………………................36 6. References……………………………....……………………………....…………………………….....................38 7.Appendices……………………………....……………………………....……………………………....……...........41
  6. 6. 6 List of Figures Figure 1: Project Methodology Figure 2: Primary and Secondary Data Sources Figure 3: Responses from University Sustainability Offices Figure 4: Melbourne University Sustainability Pledge Figure 5: Hall of Badges Figure 6: Brand Recognition Figure 7: Brand Perception Figure 8: Customer Loyalty Figure 9: KeepCup Environmental Analysis Figure 10: Share of Coffee Consumption by Location - source Statista Figure 11: Position of U.S. Cities based on Coffee Culture and Sustainability Figure 12: Competitive Landscape for B&N with regards to selling KeepCups Figure 13: Facts about Greek Fraternities and Sororities Figure 14: Fraternities and Sororities in All Target Locations Figure 15: Responses from University Sustainability Offices Figure 16: Timeline of Action Plan for Australian University Market Figure 17: The Most Suitable Universities for KeepCup’s Entry in the U.S. Table 1: Limitations of Reuse HQ Table 2: Key Facts about USA Coffee Market 2015 from E-Imports Table 3: CLC Licensing Cost Analysis Table 4: Strategies of Entry that Require Licensing
  7. 7. 7 1. Introduction 1.1 Background KeepCup, the leading producer of the environmentally friendly alternative to disposable cups, has grown rapidly since its inception in 2009. (1) Given the high volume of students coming through universities each year, these institutions offer a unique opportunity for KeepCup to engage students with a message of sustainable living. With this opportunity in mind, KeepCup is continually looking for appropriate methods and suitable promotional campaigns to engage with the Australian university student population. Whilst in Australia universities have been a key market, KeepCup has been unable to gain traction in the U.S. university sector due to extensive licensing regulations despite seeing growth in the U.S. market. More than this, US universities present a very different set of challenges with a different way of consuming coffee to Australia and even within the country. This means KeepCup has to take a different approach to the US university sector and with a larger team now in place in Los Angeles, KeepCup now has the capabilities to focus more resources. Thus, the Melbourne based company wishes to explore the feasibil- ity of entry and also potential avenues into the U.S. collegiate sector. 1.2 Problem Statement and Purpose With the Australian university sector remaining one of KeepCup’s most profitable markets, KeepCup Consulting has been commissioned to highlight areas for improvement in Keep- Cup’s sale and promotional strategy with the ultimate purpose of increasing sales in the Australian university market. Furthermore, with a clear opportunity for KeepCup to enter the U.S. university market identified, KeepCup consulting has been tasked with determin- ing strategies to enter the US university market, while addressing the issues of licensing. The ultimate purpose of this project is thus to increase sales in both the Australian and U.S. university markets. 1.3 Project Scope This report will explore future growth options in the Australian market and look to synthe- sise proposals for further marketing campaign opportunities. Then the report will turn to the U.S. collegiate market and explore strategies for expanding KeepCup’s presence in the U.S. collegiate sector, paying particular attention to the relevant regulatory and licensing restrictions.
  8. 8. 8 This report is designed to investigate the following points as agreed between KeepCup Con- sulting and Project Sponsor, Adam Katsonis. Project 1: Increase KeepCup’s Sales in the Australian University Market Formulate recommendations specific to the Australian university market. Ascertain success of previous business relationships and marketing strategies KeepCup has already undertaken to target the Australian university market. Project 2: Increase KeepCup’s sales in the U.S. University Market Investigate the U.S. university market, particularly the relevant regulatory and licensing restrictions Find potential partnerships and initiatives for KeepCup and ascertain avenues for Formulate action plan with recommendations for entry into the U.S. university market 1.4 Methodology 1.4.1 Diagrammatic Summary of Project Methodology In developing recommendations for KeepCup in both the Australian and U.S. university markets, we followed a systematic approach as shown in the figure below. Recommendations > Create recommendations based on key survey findings (Aus) > Suggest possible strategies to enter into the university market (U.S.) Investigation and Data Collection > Create and finalise data collection plan > Formalise survey and interview questions (Aus) > Research university regulatory environment (U.S.) Analysis > Analyse existing and past campaigns > Determine trends from interview and survey findings > Perform comparative analysis of entry strategies (U.S.) Initiation of Project > Outline and approve project aim and scope > Determine key stakeholders and deliverables > Research existing and past campaigns 01 03 02 04 Figure 1: Project Methodology
  9. 9. 9 1.4.2 Data Sources and Collection Methods Data sources used for the purpose of this report include primary and secondary data in the form of semi-structured interviews, surveys and industry reports. Figure 2 below shows the sources used. Figure 2: Primary and Secondary Data Sources Melbourne University Sustainability Report Data Sources Primary Secondary Face-to-face Interviews Obtain deeper insight into the rela8onship between Melbourne University cafes and KeepCup to determine how to further build on these rela8onships. (Sample size: 7) 22-Ques:on Electronic Survey Measure brand awareness and loyalty of KeepCup in the Australian university student market. (Sample size: 107) 3-Ques:on Semi-structured Email Survey Gauge the interest of U.S. university sustainability offices towards a reusable cup campaign. (Sample size: 35) 4-Ques:on Open-ended Email Survey Assess the sa8sfac8on of Australian and New Zealand university sustainability offices with both the company and the product. (Sample size: 7) Semi-structured Phone Interviews Deepen understanding of Barnes and Noble’s product purchase and distribu8on regula8ons. (Sample size: 3) KeepCup’s own promo8onal materials pertaining to past campaigns and ini8a8ve Reports and applica8ons from the Collegiate Licensing Company (CLC) Annual financial reports for Barnes and Noble Online publica8ons and industry reports exploring the U.S. collegiate sector and U.S. coffee market
  10. 10. 10 Melbourne University as a Case Study This was notably the case when conduc2ng market research on cafes and residen2al colleges. Melbourne University has over 50,000 students, encompassing a large por2on of interna2onal and interstate Australian students. (2) While adult Melbournians do have a unique coffee culture in Australia (3), the coffee habits of university students do not vary to the same degree. KeepCup Consul2ng chose the University of Melbourne as the main locality to perform primary research. Targe&ng of Students and not Staff KeepCup Consul+ng recognises that university staff represent a significant por+on of the consumers on campus. However, this report focuses on increasing KeepCup sales among students. The strategy aims to target the high volume of new students that come through universi+es each year. This is also due to the difference in approach that would need to be undertaken for the different markets. Limita&ons in Obtaining Informa&on for the U.S. Difficul'es in fully accoun'ng for geographical diversi'es across different areas. Mul'ple factors such as distribu'on channels and marke'ng costs were not taken into considera'on due the complexity in es'ma'on. There was less data from past U.S. marke'ng campaigns to analyse. Hence, a basic cost analysis was conducted with only the licensing cost, produc'on cost and projected revenues. Limita&ons of Email Survey with Australian Sustainability Offices Inability to clarify and ask follow up ques6ons. Somewhat mi6gated by allowing answers to be open-ended, thus giving the respondents the opportunity to fully express their opinions. A response rate of 20% resulted in merely seven recorded responses. However, the detailed qualita6ve nature of the responses provided useful feedback going forward. 1.4.3 Methodological Scope & Limitations
  11. 11. 11 2. KeepCup’s Strategy in the Australian University 2.1 Business Relationships This section will identify, discuss and analyse KeepCup’s current relationships with distribu- tors of its KeepCups to the end consumers – students. In a search to find effective ways of in- creasing sales across the university market, KeepCup Consulting has performed primary and secondary research into KeepCup’s current business relationships in the university market. 2.1.1 Cafes KeepCup Consulting explored current relationships KeepCup has with university cafes. To achieve this goal, Melbourne University was used as a case study and 7 on-campus cafes participated in the semi-structured interviews. The purpose of the interviews was to de- termine café’s perception of KeepCup as well as assessing the desire for future potential partnerships and issues the cafes might have with the product. The interviews were also designed to inquire whether cafes were willing to provide discounts as incentives for Keep- Cup users or offer KeepCup products for sale, where both strategies may lead to an increase in sales in the Australian University market. A copy of the general questions asked can be seen in appendix 2. Perceptions of KeepCup Cafes in general are satisfied with the KeepCup, much like the two cafes above. The major competitor in the Melbourne University market is Frank Green, which was sold in 4 out of the 7 cafes that were interviewed. The manager of The Potter mentioned that the cafe ordered Frank Green because a student designed the product so he thought the product would better suit student needs. However, the Frank Green cup also has many disadvantag- es such as being more expensive and not as suitable with barista equipment. Market “The only size that doesn’t fit in coffee machines is the 16 ounce because the cup is too tall” - Manager, Castro’s Kiosk “The KeepCup is perfect for blending milk and coffee” - Manager, Carte Crepes
  12. 12. 12 Desire for Future Partnerships When asked whether there were existing discounts in place for KeepCup holders, KeepCup Consulting found out that most cafes do already have existing discounts in place such as 10 cents for Carte Crepes and 20 cents at Baretto Espresso Bar. The problem is that this dis- count is offered to all reusable cup holders and not just KeepCup holders. Many customers also are not aware of these discounts because they are not being actively advertised. Hav- ing a formalized discount agreement with cafes is also very difficult because the number of cafes on campuses as well as the need to provide them with an incentive for the dis- counts. In addition, some cafes such as Carte Crepes mentioned that their primary means of generating revenue is to sell as many beverages as possible and that limits the time they have available for advertising other products such as KeepCups. Another problem for some cafes is the minimum order quantity, as stated by the Manager of Castro’s Kiosk above. 2.1.2 Sustainability Offices This section outlines and analyses KeepCups relationship with sustainability offices around AustraliaandNewZealand.Inordertocollectthisdata,anopen-endedsurveywasconducted. ThepurposewastoassessKeepCup’srelationshipwiththesesustainabilityoffices,andevalu- atehowitcouldbeimprovedtofurtherdrivesalesamonguniversitystudentsviatheseoffices. Why does the sustainability office purchase them? How successful are these exis:ng rela:onships? Free Gi> Resell A dream to deal with Very professional Sugges:ons for improvement? Online ordering Special offers Have you had any issues with the service? Slow responses Too expensive “We make most money during rush hour when students just want to buy coffee and go, so we have no time to sell products” - Manager, Carte Crepes “The minimum order size for KeepCups with logos was way too large. I would sell the cups but did not want to order so many” - Manager, Castro’s Kiosk Figure 3: Responses from University Sustainability Offices
  13. 13. 13 With regards to Figure 3, while all of the offices acknowledged that their expectations of the product were met with regards to the product being delivered, some universities raised minor issues with the order process. The Queensland University of Technology (QUT) and the University of Auckland expressed their delay with placing orders, as this process is cur- rently performed via email. One such recommendation, which QUT suggested, would be to initiate online ordering among the sustainability offices, which will need to be optimised to allow each sustainability office to place their individual orders. Furthermore, three out of the seven universities commented on the price and suggest- ed that KeepCup should offer more discounts. However, this decision entirely depends on KeepCup’s willingness to drop margins to capture a greater share of the market. 2.1.3 Residential Colleges KeepCup has already forged a relationship with several of the Australian universities’ top colleges, such as a few of the University of Melbourne’s residential colleges: Ormond Col- lege, Trinity College, and Queens College. These colleges have placed orders upwards of 200 KeepCups each, which have been used as gift to students either as a welcoming or leaving gift. Although limited by time and access to the market, our research indicated that there were still several colleges whom had not been approached by KeepCup. As a test run, KeepCup Consulting discussed the idea of providing end of year gifts to stu- dents at St. Mary’s College. The college, which strives to improve in areas such as sustain- ability awareness, approved the idea and placed an order of 160 KeepCups in September 2015. This demonstrated the effectiveness of simply approaching potential clients to in- crease sales of KeepCups, as the product and company has already built up popularity. KEY TAKEAWAYS 2.1 •  Frank Green is a major compe0tor, however, its product is more expensive and less compa0ble with coffee machines than the KeepCup. •  Cafe owners are reluctant to order KeepCups to sell at cafes but are willing to act as a distributor for KeepCup if they are provided with the product and receive a por0on of the proceeds. •  Cafes give varying amounts of discounts to reusable cup holders and the discount amount is hard to standardize, but managers are interested in marke0ng campaigns to widen their reach on campus. •  KeepCup is seen as a very professional company to deal with. •  Email order system needs to be streamlined. •  Opportunity to move university orders to the online system. •  Have increased sales through increased brand awareness by simply approaching residen0al colleges.
  14. 14. 14 2.2 Previous Marketing and Promotional Strategies In order to achieve the goal of increasing sales in the University market, KeepCup Con- sulting evaluated past KeepCup campaigns and promotional strategies to determine ef- fective past strategies as well as determine areas in need of improvement going forward. The three main marketing outlets evaluated were the Melbourne University sustainabil- ity pledge, the partnership with Kill The Cup campaign, and KeepCup’s own Reuse HQ. 2.2.1 Melbourne University Sustainability Pledge Since 2010, Melbourne University has initiated the Sustainability Commitment and has been a highly recognisable sustainability awareness tool. Participants, both students and staff, agreed to a sustainability pledge and in return received a free KeepCup, which the sustainability office purchased from KeepCup Pty Ltd. Over 10,000 KeepCups ($70,000) sold to Melbourne University (4). The pledge has reduced electricity costs and increased recycling rates. Figure 4: Melbourne University Sustainability Pledge Met expectations One of their most popular engagement activities Feedback observed from an email survey conducted by KeepCup Consulting: A report conducted by the Melbourne University Sustainability Manager in October 2014 highlighted its very positive relationship with KeepCup and the desire to continue the pledge (4). Figure (x) illustrates the successful relationship KeepCup has with the Melbourne University Sustainability Office. In fact, results from the survey showed that there is no clear way to improve this relationship to further drive sales. However, when participants were asked why did they not use their cup more often, many maintained that they either forget to bring their cup with them, or that they forgot they made the pledge in the first place. Here there is an identified need for the university to re- mind students of the pledge they made and the free KeepCup they received. As currently there is no channel for this type of communication, it would be beneficial for KeepCup to find a way to connect and develop a relationship with the students, for example through Reuse HQ or through quarterly email reminders.
  15. 15. 15 2.2.2 Kill The Cup KeepCup partnered with the Kill The Cup university challenge in 2014. The purpose of the partnership was to extend the KeepCup brand into the U.S. while also to encourage stu- dents to reduce waste by using reusable cups. With a discount offered on each KeepCup purchase through a university’s promo code, students were challenged to upload creative photos using their reusable cups for a weekly grand prize. The team’s analysis revealed that the campaign did manage to gain some traction among students, but its outreach was restricted due to the limited number of participating univer- sities. Furthermore, the team found that providing a code to each university, which offers students a discount on purchases, proved to be a popular incentive for driving additional sales. Hence, KeepCup Consulting believes the campaign’s platform, with its corresponding discounts, does hold considerable potential to increase sales among students. However, considerably more universities would have to participate in order for the campaign to deliv- er a substantial increase in sales. 2.2.3 Reuse HQ Reuse Revolution HQ, or Reuse HQ, is an online platform introduced by KeepCup in late 2014, dedicated to promoting the continuous use of reusable coffee cups. (5) Reuse HQ quantifies the achievements of users in reducing disposable cup waste by measuring the impact of individuals and organisations. (6) Our analysis of Reuse HQ acknowledges that this platform has the po- tential to stimulate brand loyalty and further drive sales among univer- sity students. Firstly, it is easy to use, only requiring users to provide the number of KeepCups they use each week. (6) Secondly, the fact that users are encouraged to hit milestones to obtain achievement badges (as shown in Figure 5) creates a more active and impactful ex- perience for a KeepCup user. If collectively used by the majority of consumers, the platform has the potential to push KeepCup ahead of the competition by encouraging these users to be part of the ‘bigger movement.’ (5) Figure 5: Hall of Badges Limita&on Reuse HQ automatically updates customer usage every week regardless of actual usage. (6) Reuse HQ incentivises users through positive affirmation rather than tangible or loyalty rewards. Users use the KeepCup the same amount of times each week. Users are motivated to use the KeepCup by virtual affirmations (milestones, hall of badges) Assump&on Large margin for error, individual and aggregated global statistics may be unreliable Positive affirmation alone is unlikely to motivate university students. Result Table 1: Limitations of Reuse HQ Ultimately, two key problems exist for Reuse HQ: firstly there is a lack of awareness among university students that the platform even exists, with only 1 out of 72 respondents noting that they have heard about it (appendix 1, question 13); and secondly, as shown in Table 1 it is unlikely to gain traction among university students without tangible rewards and an accurate tracking system.
  16. 16. 16 KEY TAKEAWAYS 2.2 •  KeepCup has had a highly successful rela2onship with the Melbourne University Sustainability Office. •  Problems found with pledge programs are students oAen forget to bring their cup with them, or that they forgot they made the pledge and had a KeepCup in the first place. •  There is need for the university to remind students of the pledge they have made and the free KeepCup they received. •  Using discount codes to promote KeepCup sales is a proven strategy. •  When assessing similar campaigns, a key considera2on is the number of par2cipa2ng universi2es. •  When partnering with ini2a2ves, it is important to consider the ability of the ini2a2ve to reach KeepCup’s target consumer sector. •  Reuse HQ has poten2al to s2mulate brand loyalty as it's easy to use, useful for consumers to track their usage and encourages their con2nued use. •  Reuse HQ has some limita2ons such as; - low accuracy of tracking actual KeepCup usage - does not provide tangible rewards
  17. 17. 17 2.3 Key Findings from Survey Results To determine KeepCup’s brand recognition, brand perception, and customer loyalty, a 22-question survey was released to the Melbourne University student population. Re- sponses from over 100 students have resulted in extensive findings. The key findings are presented in this section, while the remainder of the results may be viewed in appendix 1. 84.1% 57.9% Do you recognise the product above? (A picture of a KeepCup was shown) Are you aware this product is called a KeepCup? BRAND RECOGNITION BRAND PERCEPTION Figure 7 Figure 6 What is it you would most like to change about your KeepCup? Do you associate sustainability with this product? Neutral Strongly Agree Agree Strongly Disagree Disagree 50 45 40 35 30 25 20 15 10 5 0 Make it easier to clean Make it Spill-proof Not very convenient to carry around
  18. 18. 18 CUSTOMER LOYALTY Figure 8 3-4 %mes a week Once a month Once a week Daily 39.4% 9.1% 27.3% 24.2% How often do you use it? (KeepCup) 74.3% Would you recommend KeepCup to a friend? Which of the below incentives would further encourage you to use a KeepCup? 0 10 20 30 40 50 60 70 80 90 100 Freq. 10-cent discount on coffee Free upsize of coffee 20% discount on next KeepCup purchase An app to track your sustainability impact from using KeepCup Brand recognition is defined as, “the extent to which the general public (or an organiza- tion’s target market) is able to identify a brand by its attributes.” (8) When respondents were asked to identify the brand of KeepCup (see figure 6), 84.1% recognized the product but only 57.9% knew the product is called a KeepCup. This highlights the fact that brand recognition of KeepCup is lower than expected among university students. For brand perception, in figure 7, respondents were asked to respond to a question pertain- ing to the sustainability brand association: 70% of respondents agreed or strongly associate sustainability with the KeepCup. This indicates that customers are aware of KeepCup’s sus- tainability benefits, however, there is still room for improved advertisement of this message since sustainability is one of KeepCup’s main goals.
  19. 19. 19 Respondents were also asked what they would change about the KeepCup to deter- mine any perceived inconveniences of the product. The topical issues raised were that the KeepCup is not spill proof (often leaks), inconvenient to carry around and hard to clean. These three issues may hinder its reputation, and thus decrease sales. Lastly, to address brand loyalty (see Figure 8), KeepCup Consulting focuses on factors that re- sultincustomersfrequentlyusingtheKeepCupaswellthelikelihoodtheywouldrecommend the product to a friend. Despite only 40% of respondents using their KeepCups once a month while less than 10% use the cups daily, 74.3% would still recommend the product to a friend. While students may have positive perceptions of the product, the frequency with which students use their KeepCups should be addressed to increase brand loyalty as the more fre- quently students use the KeepCup the more in-hand advertising will occur, which is the indi- rect link to increase sales. The following survey question indicated that a 10-cent discount on coffee,followedbyafreeupsizeofcoffee,wouldmotivatemorefrequentuseoftheKeepCup. KEY TAKEAWAYS 2.3 •  Consumer know of the KeepCup product but are unable to iden7fy the brand of “KeepCup”. •  KeepCup’s sustainability message is ge>ng to the consumers but many think that the product is too expensive or has problems with the design of the cup lid. •  KeepCup owners oAen forget to use the cup but s7ll mostly have a favorable view of the product.
  20. 20. 20 3. Expanding KeepCup’s Presence in the U.S. University Market 3.1 Geographic Segmentation 3.1.1 U.S. Consumer Profile Strengths Weaknesses Opportuni2es Threats Internal - KeepCup External – US Universities ●  Promo2on of an environmental conscious ●  Customizable (logos, colours) ●  Fits under barista coffee machines ●  Differen2ated product to ‘compe2tors’ like Starbucks cup ●  Strong social media presence (Instagram, Facebook, TwiFer) ●  Dishwasher friendly ●  KeepCup Brew is rela2vely expensive to US compe2tors products ●  Plas2c KeepCup is not always viewed as a sustainable product ●  Young company - brand awareness is lacking, ●  Limited resources in the States. ●  Consumers who already own reusable cups may not be suscep2ble to switch ●  No in-store sales ●  Substan2al University funding ●  Biggest coffee consumers in the world ●  Speciality coffee is growing in popularity ●  Join forces with environmental organisa2ons ●  Extend into in-store sales ●  The US has a different coffee culture ●  Items with college logos require licensing ●  More expensive than some other compe2tors’ products, especially the Brew ●  Threat of new subs2tutes and entrants into the market Figure 9: KeepCup Environmental Analysis One of the largest threats to KeepCup is the vastly different coffee culture the U.S. has when compared to Australia. Further analysis shows that the coffee culture in fact differs between and within states. This highlights the importance of identifying the areas most suitable in which to expand KeepCup’s presence. In order to determine whether the product has the potential to be successful in the U.S. University Market, the team used a Forbes framework analysing the qualities required of a successful product (see framework in Appendix 3). After establishing the product has the potential for success, KeepCup Consulting has shifted its focus to examining the internal and external factors that come into play for KeepCup in the U.S. university market. Figure 9 is an environmental analysis for KeepCup entering the region.
  21. 21. 21 Facts 50% (30 million people) of the population over the age of 18 consume coffee daily. Men and women drink the same amount of coffee. The average coffee drinker consumes three cups per day. 30% (18 million people) drink coffee occasionally. The average cup size is 9 ounces. Makes Americans the leading coffee consumer in the world. Can target both, but for different reasons: men indicated that it helps them get the job done; women think of coffee as a good way to relax. Highlights the need for reusable coffee drinkware. Again, emphasising the large potential target market for KeepCup. The small KeepCup (8 ounce) is likely to be too small for most American coffee drinkers. Observa,on/Analysis Table 2 presented above emphasises the large potential target market KeepCup has in the U.S.. However, the location in which these coffee drinkers consume their coffee must also be considered, as this will directly influence their desire and need to use a KeepCup. This notion is supported by the figure below, which shows that 74% of the coffee consuming population drinks their coffee at home, where the need to use a KeepCup is diminished. Table 2: Key Facts about USA Coffee Market 2015 from E-Imports (9) Home Work Eating Place Travelling Other 100% 80% 60% 40% 20% 0% Loca-on Share of Coffee Consumed Share of Coffee Consump0on by Loca0on (2015) Figure 10: Share of Coffee Consumption by Location - source Statista (10) Based on Figure 10, KeepCup’s can only realistically target 16% of the market - the 12% that consume their coffee at work and the 4% who consume it while traveling. Although no available data exists for coffee consumption habits of the university population across the U.S., these percentages are likely to be lower for students due to the reduced commute time when living on or nearby campus, and the lower work participation rates when study- ing full-time. A study in 2013 from the University of New Hampshire suggested that the average student consumption of coffee was 2-6 cups per week. (11)
  22. 22. 22 Given the assertion that young university students drink less coffee than working adults, and the fact that most coffee is in fact consumed at home, it is important to further seg- ment the market to find areas where the KeepCup is likely to experience greater popularity. Using the findings from KeepCup’s success in Melbourne and Australia, it is apparent that the two most important demographic factors are the coffee culture and the emphasis the population places on sustainability. 3.1.2 Target Locations To rank which U.S. cities are most appropriate, KeepCup Consulting has looked at the two most important demographic factors: coffee culture and the emphasis on sustainability (see 3.1.1). Given that these factors are difficult to measure, the team developed an ordinal ranking system based on current rankings of each U.S. city. (12-19) Both factors were cross-analysed and have been displayed in the quadrant diagram below. Figure 11: Position of U.S. Cities based on Coffee Culture and Sustainability Here, the northeast quadrant combines both a strong coffee culture with a high sustain- ability ranking. These are the locations that are likely to yield KeepCup its greatest success in the U.S. Market.
  23. 23. 23 3.2 Avenues for Entry The strategies recommended for the U.S. and Australian university sectors will be funda- mentally different given that KeepCup is a new player in the U.S. university market whereas in Australia it has already established a significant presence. For example, in one market we look to improve existing business relationships whilst in the other we seek to create new ones. Moreover, the U.S. market presents the additional hurdle of obtaining the necessary license in order to sell the cup with a logo. These issues will be addressed in the following sections. 3.2.1 Barnes & Noble Barnes & Noble is a large retail bookseller in the U.S., currently owning bookstores at 724 university campuses, reaching more than 5.2 million students.(20) It’s college stores are growing rapidly and proving to be a profitable business structure and thus offer a plat- form for KeepCup’s to sell to an ever growing population of American university students. Figure 12 below is an analysis of the competitive landscape of Barnes & Nobles with regards to selling KeepCups: Threat of New Entrants •  Starbucks reusable cup: popular in the U.S. and already has a foothold in B&N cafes •  Joco Cup sold online on its website and through Amazon; likely to compete with KeepCup if it enters B&N •  High ease of subsEtuEon if comparable product enters (i.e. Joco) Bargaining Power of Supplier (KeepCup) •  KeepCup has liHle negoEaEng power over B&N •  PotenEally strict contractual obligaEons Threat of Exis<ng Subs<tutes •  Tumbler: not perfect subsEtute, but serves a similar purpose; not barista-friendly •  Perceived level of product differenEaEon with the exisEng products at B&N Bargaining Power of Buyers (Uni Students) •  University students have liHle influence over B&N pricing •  Students have liHle, if any income, and are therefore very price sensiEve Poten<al Entrants Subs<tutes Suppliers Buyers High Pressure Low Pressure High Pressure M edium Pressure Figure 12: Competitive Landscape for B&N with regards to selling KeepCups KEY TAKEAWAYS 2.2 •  A large threat in the U.S. for KeepCup is the vastly different coffee culture when compared to Australia. •  Coffee culture differs within states. Thus important for KeepCup to iden>fy most suitable areas in which to expand KeepCup’s presence. •  There is a large poten>al market in the U.S. however, the loca>on (home, commu>ng etc.) in which these coffee drinkers consume their coffee must also be considered. •  Two most important demographic factors determining the popularity of KeepCups from experience in Australia are the coffee culture and the emphasis the popula>on places on sustainability. •  Looking at coffee culture and the emphasis on sustainability as determining factors, San Francisco, SeaHle and Portland ranked highest. KeepCup should target these areas for ini>al entry. KEY TAKEAWAYS 3.1
  24. 24. 24 The competitive analysis presented in Figure 12 outlines the lack of comparable products currently offered for sale at B&N. Although tumblers could be regarded as a substitute, there is a high level of product differentiation with KeepCup being barista standard and having the sustainability brand association. Furthermore, another advantageous aspect is that B&N does not require licensing to sell the general unlabeled product in its stores. An examination of these stainless steel tumblers, which are sold for $15 (US) can give an indication of the potential for KeepCups. In phone interviews with Barnes & Noble univer- sity store managers, the team learned that about 50 tumblers were sold per month while school apparel were the most popular items in the store. Although 50 tumblers per month is a modest number, when the product is being sold across all 724 university stores that results in 36,200 tumblers sold per month. Furthermore, the bargaining power of the end consumers will have little influence on Keep- Cup’s decision in its partnership with B&N. However, the analysis shows the existence of high pressured threat of new entrants into the market, with the Starbucks reusable cups and the Joco cup already available in the wider U.S. market. In addition, due to the bar- gaining power B&N holds over KeepCup, the firm will have to be mindful of its contractual obligations when partnering with a strong player in B&N. For more information regarding the process of getting KeepCups into B&N stores please see appendix 4. 3.2.2 Residential Halls and Student Clubs Another potential entry strategy for the firm is offering students KeepCups branded with the logos of their residential halls and student clubs. Partnerships can be made with halls and student clubs to purchase the cups in wholesale quantities and offer them to their students Residential Halls Before commencing with licensing applications, KeepCup must consider which entry strat- egy presents the most potential for increasing sales. As was expressed in the report, the team’s research has revealed that offering branded KeepCups to residential halls at whole- sale prices has proved successful in securing sales and promoting brand awareness at a number of universities across Australia. (21) This was further illustrated by the team’s suc- cessful partnering of KeepCup and St. Mary’s College, when the latter was searching for a farewell gift to offer its students. While there are many residential halls found in Univer- sities across Australia, they only account for a small fraction of the student population. In contrast, American university students are more disposed to living on campus where residential halls and dorms house the great majority of students. Hence, employing this strategy in the US exposes KeepCup to a much larger consumer market. Student Clubs The team’s research into student clubs and societies throughout the U.S. university market revealed that Greek fraternities and sororities stand out as an avenue for entry on a nation- al scale (22). Their reach far exceeds state borders with Chapters in almost every campus across the country.
  25. 25. 25 Annual fee for a new member can exceed$1200 (USD). Accoun;ng for all other customary outlays on events and ac;vi;es on the house’s calendar, the typical student can expect to spend over $1500 annually on his Greek lifestyle. (23) With 123 clubs and 9 million members across the U.S. The high annual fees and extensive reach mean the potential revenue this market may generate for KeepCup is substantial (see Figure 13). This is further supported by two phone interviews the team conducted with representatives at the online stores of the Alpha Kap- pa Phi fraternity and the Kappa Kappa Gamma sorority. The representatives informed the team that last year the fraternity store sold 512 of its travel mugs, at $9.95 each, to students at Portland State University alone, while the sorority store sold 6927 of its tumblers, at $12 each, nationwide. Ensuing research has revealed that almost every American university is home to a consid- erable number of fraternities and sororities. (24) As such KeepCup consulting has focused on the more prestigious and well-financed clubs who have a national presence. Below is a figure displaying some of the fraternities and sororities who have Chapters in all of the tar- get locations which were highlighted in the quadrant diagram in section 3.1.2. Figure 13: Facts about Greek Fraternities and Sororities Fraterni(es Sorori(es Figure 14: Fraternities and Sororities in All Target Locations
  26. 26. 26 3.2.3 University Sustainability Offices Entry via sustainability offices would enable KeepCup to establish a formal relationship with universities instead of entry to universities via indirect methods, such as cafes or student clubs. A semi-structured four-question survey was carried out with a sample of 35 sustain- ability offices in universities (with enrolment >7000 students) across the U.S.. The results are shown in the charts below. The purpose of the survey was to gauge the interest of the offices towards reusable coffee cup campaigns. Findings indicate that KeepCup’s cause would be very relevant for these offices, as some of them have already been involved with reusable cup campaigns in the past. However, an interesting finding of the survey was that 15% (89% less 74%) of those interested do not consider a pledge program to be the best option. These were mostly sus- tainability offices that have done pledge programs before and found that students do not remember or follow through their pledges. A full verbatim for the open-ended survey is presented in Appendix 5 for Northwestern Uni- versity. Of note, Villanova University suggested that an ongoing rewards program that tracks behavior changes over time would be more effective in promoting sustainability. Also, it can be deduced that having the university logo on reusable cups is important to sustainability offices, therefore this entry method may require KeepCup to obtain CLC licensing. 89% Are you interested in campaigns involving reusable coffee cups? 77% Do you think having the university logo on the reusable cups are important? 74% Would you be interested in a pledge program, where students can pledge to a sustainability ini:a:ve/ commitment in exchange for a free reusable cup? Figure 15: Responses from University Sustainability Offices
  27. 27. 27 3.3 Regulation and Licensing 3.3.1 Collegiate Licensing Company The Collegiate Licensing Company (CLC) is partnered with over 200 universities through- out the United States, providing a common application for the use of a variety of uni- versity trademark licensing programs. Each license, however, does not allow use of lo- gos from all 200 universities but a selection based on the applicant’s preferences. (25) Based on a simple cost analysis conducted by KeepCup Consulting, KeepCup should ob- tain the license if the company is confident that at least 3200 KeepCups can be sold to the universities within the next year. Based on our research of competitors’ on-campus sales figures, KeepCup would need to expand into at least 6 universities in order to cover the licensing costs. Detail of this analysis is shown in Table 3 below. Plas%c 12oz 30 cups 240 cups 500 cups 1000 cups Selling price (per cup) $7.30 $6.90 $6.70 $6.40 Profit $4.90 $4.50 $4.30 $4.00 Break-Even 2606 cups 2867 cups 3015 cups 3187 cups Table 3: CLC Licensing Cost Analysis KEY TAKEAWAYS 2.2 •  Barnes & Noble university stores have the means to reach to students across the U.S. •  KeepCup can sell its products to students without the need of licensing. •  Process for applica@on for KeepCup to be sold in B&N stores is straighAorward. •  There are many factors to consider when approaching B&N: - large company with significant bargaining power - similar products such as travel mugs, tumblers, and Starbucks reusable cups •  Offering KeepCups to residen@al halls at wholesale prices, branded with their own logos, has generated considerable sales in the Australian university market. However in the U.S. there is the need to obtain the required licence. •  American university students are more disposed to living on campus than Australian’s with the great majority of students living in residen@al halls and dorms houses •  The larger Greek fraterni@es and sorori@es have chapters in almost every campus across the country and present an avenue for entry on a na@onal scale. •  There over 123 fraterni@es and sorori@es with over 9 million members across the U.S. •  Most offices are interested in reusable coffee cup campaigns, some already have those campaigns in place. •  Pledge programs are generally well received. •  Entry via sustainability offices would most likely require CLC licensing. KEY TAKEAWAYS 3.2
  28. 28. 28 3.3.2 Licensing Required for Residential Halls and Student Clubs In the U.S. university market, licensing is required for the branding of products with any organisation’s logo, including those of residential halls and student clubs. (26) Fortunately, most of these licenses can be obtained through online applications and frequently do not involve a substantial initial outlay. (26) Residential Halls At most American universities, residential halls are grouped under one umbrella associa- tion, such as the RHA at Portland State University which is the governing body representing University Housing & Residence Life. (27) This type of framework allows the vendor to gain access to all of the residential halls at that university by applying for only a single license. The streamlined nature of this process is further augmented by its entirely online applica- tion process, offered to potential vendors on each Association’s website. Student Clubs - Fraternities and Sororities Similarly to the CLC licensing framework employed by numerous American universities, the Greek community also employs a single licensing distributer who represents the majority of nationally recognised fraternities and sororities. This sole distributer – Affinity Consultants – offers a single license that allows the vendor to brand its products with the logos of any of Affinity’s clients. (28) However, a number of fraternities and sororities are not associated in the manner described above and require the vendor to obtain a particular license, which allows them access only to that club’s logo. For example, the sorority Delta Sigma Theta, a prominent club at Port- land State University, have their own online vendor application accessible on their national website. (29) With the licences acquired, KeepCup would be allowed to introduce the branded Keep- Cup into the online stores operated by these fraternities and sororities. Comprehensive research into the Greek community revealed that spending by member students on club merchandise has significantly increased over the past two decades, where the online out- lets account for the lion’s share of sales. (30) KEY TAKEAWAYS 2.2 •  The standard license offered by the collegiate licensing company allows KeepCup to be able to print the logos of 10 universi=es on it’s products. •  Time and required materials for the license applica=on varies depending on the universi=es requested in the applica=on because the universi=es ul=mately decides on the approval or rejec=on of the applica=on. •  Costs for the licensing vary due to factors such as royal=es paid to the universi=es. •  According to a very simple cost analysis done by KeepCup Consul=ng, KeepCup needs to be able to expand into more than 6 universi=es with the licensing in order for the licensing to be profitable. •  Most licenses for residen=al halls and student clubs can be obtained through online applica=ons and frequently do not involve a substan=al ini=al outlay. •  In the Greek community there also exists a single licensing distributer who represents the majority of na=onally recognised fraterni=es and sorori=es, Affinity Consultants. Whereby a single license allows the vendor to brand its products with the logos of any of Affinity’s clients. •  Spending by member students on club merchandise has steadily and significantly increased over the past two decades, where the online outlets account for the lion’s share of sales. KEY TAKEAWAYS 3.3
  29. 29. 29 4. Recommendations 4.1 Future Strategies in the Australian University Market The results and findings section outlines the need to improve two areas in order to increase sales in the Australian university market: brand awareness and business relationships. This section presents an overarching strategy that addresses these two areas. Depicted below in Figure 16 is a timeline outlining our action plan for the Australian univer- sity market, arranged into three key phases spanning one academic year. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PHASE 1 O-Week Booth: Clubs & Society days Carnival Days PHASE 2 PHASE 3 Cafes and Sustainability Offices: Adver6sements in Cafes Discounts in cafes Reuse HQ ResidenMal Halls and Formal Events: End-year gi? Club’s Annual Ball Building physical presence on campus Building rela6onships, physical and online presence Building rela6onships with halls and student clubs Figure 16: Timeline of Action Plan for Australian University Market 4.1.1 Phase 1: O-Week and Advertising The focus on the first phase is to improve brand awareness. This is an area that can be best addressed at the start of the academic year when students arrive at university for their Orientation Week (O-Week). 1. O-Week booth; Many universities at the beginning hold orientation weeks which is a fantastic opportunity to engage with students and create brand awareness. We recom- mend setting up a KeepCup booth with the purpose of: ● Offering KeepCups for sale, potentially as part of a Freshman Kit ● Delivering KeepCup’s sustainability message ● Promoting the KeepCup brand. Setting up a booth at the University of Melbourne, for example, comes at a cost of $1,600 onClubs&SocietydaysduringO-Week,whichattractover7000studentsadaytocampus. 2. Offering free KeepCups to O-Week guides ● For O week the respective student unions rely in senior students to volunteer to run introductory campus tours for new students. ● KeepCup recommends partnering with student unions to give KeepCups branded with the university logo as a gift to tour guides. ● Students see tour guides with the product and are introduced to the KeepCup brand by an authoritative figure.
  30. 30. 30 3. Posters around campuses: ● Design should clearly depict KeepCup product and brand name. ● Also act to advertise the presence of a booth. 4.1.2 Phase 2: Cafes and Sustainability Offices After raising brand awareness by creating a physical presence at the university, the second phase is designed to improve business relationships with Cafes and Sustainabil- ity offices. This is an attempt to increase sales by engaging clients in new ways. These include: 1. Improve business relationships with on-campus cafes Get coffee shops to offer discounts for using KeepCups ● Partner with cafes to make sure discount is communicated to consumer by advertis- ing on campus: This is done through posters and advertisements which names cafes on campus at which you get a discount through use of the KeepCup. ● Why will cafes conform? Because cafes who do not provide the discount will miss out on the positive exposure and the resulting business it generates for their competitors who did choose to advertise their participation. Tackle some cafes unwillingness to sell KeepCups Some cafes’ are unwilling to put forward the capital required for a large order of brand- ed KeepCups. To tackle this, KeepCup could initially provide the cups at no upfront cost, which means that if a Cafe did not succeed in selling its allotted number of KeepCups, those cups could be returned without the cafe incurring any cost. 2. Use Reuse HQ to track and engage with participants in university pledge programs ● Consider partnership with CafePay to solve the issue of tracking the use of the cup: a SmartBand fitted around a customer’s’ own reusable cup. The chip embedded in the band will allow customers to pay for their coffees, collect loyalty points and track their positive environmental impact. ● Utilise Reuse HQ to encourage students to keep their pledges with sustainability offic- es, particularly in using less disposable cups. Perhaps students who pledge could have the opportunity to achieve their university-specific achievement badges. For example, these badges may be rewarded to users who reach the milestone of using their Keep- Cup a certain number of times via CafePay. Achieving the badges would entitle them to discounts such as ‘buy one, get one free’, ‘free customisation of your KeepCup’ or discount codes for their future purchases of KeepCup. 3. Sustainability Offices ● Improving the email order process expressed by some sustainability offices. ● Transforming the ordering process to an online system or cloud procurement prod- uct such as Coupa. Coupa is a cloud based business to business marketplace which provides a platform to connect suppliers and buyers while also providing a streamlined ordering processes and communications links between businesses. (31) ● With cloud technologies such as Coupa, small and medium businesses can access many of the same technologies as giant multinational companies for a fraction of the historical price. (32)
  31. 31. 31 4. Draw from Kill The Cup campaign and provide discount codes ● Whilst recreating the Kill The Cup campaign is not applicable, the finding that pro- viding a discount code is a popular incentive for additional purchases can be reused. ● This could be recreated in a campaign where students who recommend KeepCups to their friends are rewarded for their role in spreading KeepCup’s message of sustain- ability. We recommend the reward to be a discount on their next KeepCup purchase. 4.1.3 Phase 3: Residential Halls While Phase 2 addresses business relationships with cafes and sustainability offices, Phase 3 is targeted at the residential colleges. This is due to the fact that our findings in this area suggest the KeepCup is best suited as an end-of-year gift to college stu- dents. Our findings show that a highly effective strategy is to merely approach the residential hall with the idea. The order process takes around six weeks, thus implementation of this stage would need to begin in September in order for the customised KeepCups to be ready for distribution by November. Therefore, it is recommended for KeepCup to approach the residential colleges by September. Once this is implemented, the phase could be extended to the following year as a means to provide the new residential halls cohort of students with KeepCups as a welcome package.
  32. 32. 32 4.2 Future Strategies in the U.S. University Market Even though there are many similarities between the Australian and American university markets, many of the recommendations above cannot be adapted to the US as KeepCup is not yet in a position to implement them. This is reflected in the report, where the focus in the Australian market was on analysing previous business relationships and campaigns in order to recommend future promotional strategies that will further consolidate KeepCup’s position in the marketplace. In contrast, the focus in the American market was on assessing potential avenues for entry so as to gain an initial foothold in the university market, where KeepCup does not yet have a significant presence. 4.2.1 Target Locations and Suitable Universities Based on the geographical segmentation of coffee culture and sustainability value conduct- ed in the report, KeepCup Consulting believes these three locations would prove most prof- itable for KeepCup to expand into: Seattle, San Francisco and Portland. Moreover, these cities are all located on the West Coast where KeepCup’s distribution centre is also situated, an advantage with regards to keeping distribution costs low. To further narrow this down to specific universities, the team cross analysed these locations with CLC clients and has put forward a shortlist of nine universities which represent the most suitable for KeepCup’s entry. These locations of these nine universities are shown in Figure 17 below. 4.2.2 Licensing University students enjoy showing their commitment towards their membered institutions by purchasing, using and displaying university apparel. The logo gives the students a way to show their passion towards their chosen institution or club, and is therefore imperative to include on the KeepCup if the firm wishes to successfully promote the product. In order to brand the cups, KeepCup would need to obtain licensing, regardless of the chosen ave- nue. This recommendation is supported by our survey results with U.S. sustainability offices where 77% maintain that the logo is important, as well as the success of the branded tum- bler at Barnes & Nobles stores noted in the report. Western Washington University CA OR WA University of Washington Washington State University Portland State University Oregon State University University of the Pacific University of California, Berkeley Stanford University Santa Clara University Figure 17: The Most Suitable Universities for KeepCup’s Entry in the U.S.
  33. 33. 33 As outlined in the report, KeepCup has the option to pursue three different strategies re- quiring licensing from differing institutions. These are presented in Table 4 below: 4.2.3 Avenues for Entry KeepCup Consulting believes the overarching entry strategy for the U.S. should also be im- plemented in phases (see below). While it is difficult to estimate specific time frames due to limitations in data availability, we have recommended an optimal structure outlining the sequence of steps in implementation. Licensing Company Target Sector Distributors CLC Universi(es B&N Sustainability Offices Affinity Consultants Fraterni(es & Sorori(es Online Retail Respec:ve Residen:al Hall Associa:ons Residen(al Halls Residen(al Halls Table 4: Strategies of Entry that Require Licensing Phase 1 - Barnes & Noble As previously discussed, Barnes and Nobles operates university stores nationwide, allowing KeepCup to fully penetrate the university market. Illustrated below are fur- ther reasons why KeepCup Consulting believes that targeting B&N should be the first phase of the action plan: ● Market Reach - access to students covering all demographics across the country ● Market Position - natural leader and power to influence consumer behaviour ● Market Depth - capacity to purchase in large quantities ● Expansion Prospects - expand into B&N stores outside of university ● Success of similar B&N products - tumblers and travel mugs In order to successfully sell the products at B&N labelled with the university logo, KeepCup will need to obtain CLC licensing.
  34. 34. 34 Phase 2 - Sustainable Campus After successfully integrating the product among university students through sales at B&N stores, it is recommended that KeepCup push for a formalised sustainability pro- gram in partnership with the sustainability offices on campus. This recommendation is drawn from our findings in the Australian university market, coupled with the fact that sustainability offices in the US are willing and open to partner with KeepCup, as expressed in our survey results. While the end goal is to promote a wholly sustainable campus, there are several pre- liminary strategies to increase the sale of KeepCups. These include but not limited to: setting up a booth at ‘Orientation Week’ and ‘Green Week’ for the sale of KeepCups and the promotion of sustainable living; ensuring coffee discounts are offered to users of KeepCups at university cafes; developing a pledge program as seen at Melbourne University. As is the case with B&N, in order to pursue this strategy a CLC license will need to be obtained. Phase 3 - Residential Halls, Sororities and Fraternities In order to increase sales through the online stores of fraternities and sororities, the product must already exhibit strong popularity among university students. For this reason, it is recommended that this sector be targeted once the product has gained traction through the implementation of the previous two phases. The popularity factor is also crucial when approaching residential halls, as these gifts must contain value in the eye of the students. This has been evident from the feedback given by residential colleges in Melbourne University. Further research has indicated some potential strategies that could be employed by residential halls to popularise the use of the cup, (33) consequently promoting aware- ness of the KeepCup brand at the university which is a key factor in driving additional sales. ● Distributing the cup as part of a Freshman’s Kit which may include information regarding the sustainable attribute of the product and a discount voucher for a second cup, as well as a map showing which on-campus cafes offer discounts when using the KeepCup. ● Providing each student with a branded KeepCup as the only type of cup accepted at the hall’s cafeteria and coffee corner, so as to prevent students who are not residents from taking advantage of the hall’s services. ● A more sustainable living approach was introduced in some residential halls, where the focus was reducing the hall’s carbon footprint by promoting reusable products. Hence, branded KeepCups were presented to the residents, who were urged to use their cups frequently. While this recommendation has also been drawn from the Australian findings, there lies a key difference in implementation - obtaining licensing. KeepCup will need to obtain a license from each RHA to sell to residential halls, and a license from Affinity Consultants to sell to fraternities and sororities. Fortunately, both of these types of licenses are offered online to potential vendors.
  35. 35. 35 4.2.4 Further Recommendations - KeepCup for a Cause Looking into the future, we believe KeepCup can increase sales by using its product to en- gage the wider consumer market, through support of topical issues. ‘KeepCup for a Cause’ is all about letting the public express its support for personal causes by purchasing a cus- tomised KeepCup which makes a bold statement, while lending some financial support to the chosen cause. This strategy will involve partnering with charities and non-profit or- ganisations by offering to divert a portion of the revenue from the sale of each cup to the chosen cause. For example, KeepCup can look to partner with: ● National Breast Cancer Awareness Inc. to provide pink KeepCups in October, being the Breast Cancer Awareness Month ● Save The Rainforest Inc. and other related organisations to offer green KeepCups during environmental conferences ● The World Wildlife Foundation to support the protection of endangered animals, such as the Red Wolf ● The Red Cross and The Salvation Army to support communities who recently suffered from natural disasters, for example the Nepalese earthquake or Japanese tsunami By providing the user with the social benefit of supporting his cause through purchasing a KeepCup, this strategy has the power to truly capture the hearts and minds of the con- sumer and increase the product’s popularity substantially.
  36. 36. 36 5. Conclusion With the university sector presenting a major avenue for increasing sales, KeepCup wanted to not only expand their presence on campuses in Australia, but also break into the U.S. university sector. As opposed to the Australian market, penetrating the U.S. university mar- ket would require a different strategy, but the ultimate goal in both sectors is to increase KeepCup purchases by students. In order to commence the analysis and draw meaningful conclusions, primary and second- ary research was conducted into both markets. In the Australian market, the focus was on previous promotional strategies and business relationships while in the U.S. market, areas of focus were the evaluation of geographic segments, avenues of entry, and licensing reg- ulations. As discussed in section 2, takeaways from business relationships in Australia have highlight- ed some areas in need of improvement. Among the on-campus cafes, research revealed that the discounts offered by cafes for using the reusable cup is difficult to standardise, but managers have shown interest in partnering with KeepCup in marketing campaigns to widen their reach on campus. Furthermore, KeepCup has a strong relationship with sustain- ability offices, but there is a need to improve the order process. Lastly, it was realised the most effective way to obtain further sales from residential colleges was to simply approach them with the idea of providing the cups as an end-of-year gift to students. Overall, there is a strong need to develop more frequent and direct correspondence with end consumers. The University of Melbourne pledge program has demonstrated the need to touch base with customers after their initial purchase, possibly by revamping Reuse HQ. The team’s analysis of the U.S. market revealed the need to divide the market and take into consideration its significantly different coffee cultures. This led to a shortlist of the most suitable locations for KeepCup’s entry, based on the coffee culture and value its residents places on sustainability. Furthermore, the main entry strategies explored were through Barnes & Nobles (B&N), residential halls and student clubs. While B&N has wide reach into the U.S. university market, it also has significant buyer power, which must be considered before entering into an agreement. Moreover, residential halls and student clubs offer a sig- nificant opportunity with a large population of students in the U.S. living on campus. These avenues, however, require their own licensing. A key finding in the U.S. market was that the successful sale of KeepCups hinges on them displaying the specific logo of the target institution. While this would require licensing, analysis shows that it is imperative to obtain these licenses if KeepCup is truly seeking to break through into the U.S. university market. Recommendations generated from research into both the Australian and U.S. university sectors have been outlined in phases designed to increase KeepCup sales. An action plan for the Australian university market, spanning one academic year, seeks to increase Keep- Cup’s presence on campus, while continuing to build business relationships. Beginning in February, it is imperative to address brand awareness through a targeted approach in Ori- entation Week across the universities. Following this, phase 2 targets the mid-year period with particular emphasis on enhancing brand loyalty through improving business relation- ships. In addition, presence on campus can be increased by revamping Reuse HQ to offer students uni-specific achievement badges and reward points for KeepCup usage. Lastly, the final stage targets the residential halls and is centred around the notion that KeepCup should approach the residential halls with the option to provide students with KeepCups as an end of year gift.
  37. 37. 37 Recommendations for the U.S. university market are focused on establishing distribution channels and targeting optimal geographic areas and avenues for entry. The three main locations were universities in Seattle, Portland and San Francisco. Phase 1 outlines the need to target B&N as first priority, given several factors such as market reach, position, depth, and the follow-on expansion prospects. While B&N does not require a separate license, obtaining a CLC license is highly recommended in order to be able to display the targeted universities’ logos. Furthermore, phase 2 draws on the similarities in the Australian market, and focuses on the physical presence at university through o-week and green-week. Sim- ilarly, a CLC license is essential at this stage. Ensuing, the final phase outlines the need to first build product popularity before targeting student clubs and residential halls. It is only then that swift action into obtaining the relevant licenses is recommended in order to tap into the vast market of live-on-campus students. Finally, the recommendations conclude with a glance into the future, suggesting several key ways to engage the wider community through the KeepCup. Notably, this includes partner- ing with charities such as Red Cross to support communities recently suffered from natural disasters. This can be achieved by diverting a portion of the revenue from the sale of each customised cup. Although efforts were made during the research process to collect and present accurate, unbiased data, there were several limitations in the development of the analysis and rec- ommendations. Melbourne University was used as a case study for the wider Australian uni- versity market, leading to a potential oversimplification of recommendations. In addition, lack of sufficient KeepCup campaigns in the U.S. along with the overwhelming complexity of the U.S. university market means that aspects of recommendations such as the licensing cost analysis require further research. However, the report has established an overarching framework complete with phases of action for increasing sales in both the Australian and U.S. university markets.
  38. 38. 38 6. References 1. Can changing the way you think, change the way you grow? [Internet]. PwC; 2011 May [cited 2015 Oct 10]. Available from: http://www.keepcup.com/docs/media/us/9_ PwC-Private-Business-Barometer-IX-KeepCup.pdf 2. Australian Education Network. Student Numbers at Australian Universities. [Inter- net]. Australianuniversities.com.au c2015 [cited 2015 Oct 10]. Available from: http://www. australianuniversities.com.au/directory/student-numbers/ 3. Stone N. Comments on: “Bluestone Lane, inspired by the world renowned coffee culture found in Melbourne Australia” 2015 [cited 2015 Sep 28]. In: What is Melbourne Cof- fee Culture and Why is it Special? [Internet]. Available from: https://www.bluestonelaneny. com/blog/what-is-melbourne-coffee-culture-goodfood/ 4. Herbert DR. The University of Melbourne KeepCup Report 2014. University of Mel- bourne, Melbourne, Australia, 2014 Oct 01 [cited 2015 Oct 10]. 5. Comments on: “KeepCup Introduces Reuse HQ” 2014 Dec 09 [cited 2015 Oct 10]. In: KeepCup[Internet].Availablefrom:http://www.keepcup.com.au/news/2014/12/100-keep- cup-introduces-reuse-hq 6. Reuse HQ [Internet]. Melbourne: KeepCup; 2014 Dec 09 [updated 2015 Oct 01; cit- ed 2015 Oct 10]. Available from: http://reusehq.keepcup.com/ 7. Yohn D. Great Brands Aim for Customers Hearts, Not Their Wallets [Internet]. Forbes; 2014 Jan 08 [cited 2015 Oct 10]. Available from: http://www.forbes.com/sites/onmarket- ing/2014/01/08/great-brands-aim-for-customers-hearts-not-their-wallets/ 8. Brand Recognition [Internet]. Alberta: Investopedia; [cited 2015 Oct 10]. Available from: http://www.investopedia.com/terms/b/brand-recognition.asp 9. Coffee Statistics [Internet]. Washington: E-Imports Espresso Business Solutions [cit- ed 2015 Oct 15]. Available from: http://www.e-importz.com/coffee-statistics.php 10. Share of coffee consumption in the United States in 2015, by location [Internet]. National Coffee Association; 2015 Feb [cited 2015 Oct 15]. Available from: http://www. statista.com/statistics/250148/us-coffee-consumption-by-location/ 11. Olsen NL. Caffeine Consumption Habits and Perceptions among University of New Hampshire Students. New Hampshire: University of New Hampshire 2013 Mar [cited 2015 Oct 15]. Available from: http://scholars.unh.edu/cgi/viewcontent.cgi?article=1102&con- text=honors 12. CNBC. America’s Most Caffeinated Cities [Internet]. c2011 [cited 2015 Sep 20]. Avail- able from: http://www.cnbc.com/2011/09/22/Americas-Most-Caffeinated-Cities.html 13. Travel + Leisure. America’s Best Coffee Cities 2013 [Internet]. [cited 2015 Sep 20]. Available from: http://www.travelandleisure.com/slideshows/americas-best-coffee-cit- ies-2013 14. En.ilovecoffee.jp. America’s Best Coffee Shops - I Love Coffee [Internet]. c2015 [cit- ed 2015 Sep 20]. Available from: http://en.ilovecoffee.jp/posts/view/69 15. Caffeineinformer.com. The Most Caffeine Addicted Country [Internet]. 2015 [cit- ed 2015 Sep 20]. Available from: http://www.caffeineinformer.com/the-most-caffeinat- ed-country 16. The Daily Meal. The 10 Best Cities for Coffee in America [Internet]. [cited 2015 Sep 20]. Available from: http://www.thedailymeal.com/travel/10-best-cities-coffee-america
  39. 39. 39 17. Thompson C. The 15 most sustainable U.S. cities [Internet]. Grist. 2009 [cited 2015 Sep 20]. Available from: http://grist.org/article/2009-07-16-sustainable-green-us-cities/ full/ 18. MNN - Mother Nature Network. Top 10 green U.S. cities [Internet]. 2015 [cited 2015 Sep 20]. Available from: http://www.mnn.com/health/allergies/photos/top-10-green-us- cities/1-portland-ore 19. Arcadis. Sustainable Cities Index 2015. [Internet]. [cited 2015 Sep 20].Available from: https://www.arcadis.com/media/E/F/B/%7BEFB74BBB-D788-42EF-A761-4807D69B- 6F70%7D9185R_Arcadis_whitepaper_2015.pdf 20. We Support and Celebrate [Internet]. Barnes and Noble College [cited 2015 Oct 20]. Available from: http://www.bncollege.com 21. One Less Cup [Internet] Wollongong: University of Wollongong, Coffee for a Cause 2012 campaign and One Less Cup 2013 initiative. [cited 2015 Oct 15]. Available from: http:// www.uow.edu.au/about/environment/onelesscup/index.html 22. Collins E, Greek Life Attraction For Prospective Students [Internet]. The Times-Del- phic,2014April6[cited2015Oct15].Availablefrom:http://timesdelphic.com/2011/04/06/ greek-life-attraction-for-prospective-students 23. Ferris S, A Deeper Look At The Cost Of Greek Life [Internet]. The GW Hatchet, 2013 Sept 15 [cited 2015 Oct 15]. Available from: http://www.gwhatchet.com/2013/09/15/ greek-life-costs/ 24. Registry of listed Fraternities and Sororities in North America [Internet]. Greek Rank: 2015 [cited 2015 Oct 15]. Available from: http://www.greekrank.com/list/ 25. LicenseApplicationGuide[Internet].Atlanta:CollegiateLicensingCompany[cited2015 Oct 15]. Available from: http://www.clc.com/getmedia/199ccae4-23e7-4d29-b593-d28db- 253dea8/CLC-License-Application-(Standard-Local).aspx 26. The Business of Greek Life: Fraternity and Sorority Merchandise, Trademarks, and Licensing [Internet]. [cited 2015 Oct 15]. Available from: http://www.qualitylogoproducts. com/blog/greek-life-fraternity-sorority-trademarks-licensing/ 27. Residential Hall Association (RHA) [Internet]. Portland State University. [cited 2015 Oct 15]. Available from: http://www.pdx.edu/rha/about-us 28. Licensing, Products, and Clients, Affinity Consultants Inc. [Internet]. [cited 2015 Oct 15]. Available from: https://greeklicensing.com/clients 29. Vendor List: Process for Obtaining More Information and Seeking a License [Inter- net]. Delta Sigma Theta Sorority Inc. [cited 2015 Oct 15]. Available from: http://www.del- tasigmatheta.org/archive13/merchandise.htm 30. Jacob P, Online Outlets Leading growth in Greek Merchandise [Internet]. The Huff- ington Post, April 6, 2014. [cited 2015 Oct 15]. Available from: http://www.huffingtonpost. com/news/greek-life/online-outlets/hr87 31. Savings-As-A-Service [Internet]. San Mateo: Coupa; [cited 2015 Oct 18]. Available from: http://www.coupa.com/why-coupa/ 32. Comments on: “Lessons on Technology and Growth from Small-Business Leaders” 2015 [cited 2015 Oct 18]. In: BCG Perspectives [Internet]. Available from: https://www. bcgperspectives.com/content/articles/technology_software_globalization_ahead_curve_ lessons_technology_growth_small_business_leaders/?chapter=2
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  41. 41. 41 7. Appendices Appendix 1 - Survey Results
  42. 42. 42
  43. 43. 43
  44. 44. 44 Appendix 2 - Cafe Interview Question Guideline (Semi- Struc- tured) 1. Have you heard of the KeepCup? 2. How often do customers bring in a KeepCup? 3. Do your baristas have any issues when customers bring their KeepCups in? 4. Do you have any existing or past relation with the firm? i.e. have you partnered with the firm with regards to its product in your establishment? If No, jump to question 11 4. What was the campaign/agreement you were involved in? 5. Did you advertise or promote it? Or did someone else? 6. Do you believe the relation has helped your business? If so, how? And if not, how can it in the future? 7. Did you notice a reduction in paper cups? Did your business save money from this? - did you quantify this? 8. Would you be interested in a follow-up promotional campaign? If so, what type of pro- motion? (offer examples- such as putting advertisements for KeepCup in store) 9. Would you be open to providing a financial incentive for using the KeepCup at your es- tablishment, such as a 10 cents discount on any coffee? 10. How would you characterize the relationship you had with the firm? Unfruitful, benefi- cial or successful? 11. Would you be open to partnering with KeepCup on a campaign supporting sustainabil- ity? 12. Would you still be interested if it required your café to provide a financial incentive for using the product? (see examples above) 13. Would you be open to having the product for sale at your café? 14. What do you like about the KeepCup? How do you think the product can be improved?
  45. 45. 45 Appendix 3 A Forbes framework: 10 Qualities of a Successful Product in the USA
  46. 46. 46 Appendix 4 - B&N Order Process: The process of getting a product like the KeepCup into Barnes & Noble university book- stores is straightforward: send a product sample as well as an order form including quotes for different quantities to the Barnes & Noble university headquarters. Barnes & Noble will then reply with a decision about whether they are interested in ordering the product. Sup- pliers like KeepCup would receive their order fees while Barnes & Noble will then price the product at a premium for sale. This represents an easy and effective way for keepcup to sell to a large segment of the market. The advantageous aspect of selling through the Barnes & Noble university bookstores is that the chain does not require licensing to sell the general product in its stores. This means that no licensing will be required as long as no logos are printed on the KeepCups. The cafes within the Barnes & Noble stores however are Starbucks cafes, meaning that the KeepCup cannot be sold there. However, they would be able to be sold throughout the Barnes & Noble stores. Appendix 5 - U.S. Sustainability Offices Survey Survey Questions Yes/No Questions (28 responses) 1. Have you considered campaigns involving reusable coffee cups? If no, would you be in- terested in such an initiative? Yes/No 2. Do you think having the university logo on environmentally-friendly products is import- ant? Yes/No 3. Would you be interested in the idea of a pledge program, where students can pledge to a sustainability initiative in exchange for a free reusable coffee cup? Yes/No Open-ended (7 responses): 1. What would you guys look for when considering to invest in an environmental campaign? 2. Do you actively partner with any uni stores in promoting environmentally-friendly prod- ucts? 3. What initiatives have you carried out in making sure the university distributes environ- mental friendly products? (e.g. on orientation, events, uni stores) Response from Northwestern University (response to open-ended): This is Christina whom you spoke with on the phone. Thanks for the email! 1) Our office has worked on an initiative to reduce bottled water waste and promote re-us- ability, but we haven’t done anything specifically focused on coffee cups. We do work with Northwestern Dining to promote a discount customers can receive when they do use reus- able cups, though. I think an initiative to promote reusable coffee cups would be cool here, whether it’s taken on by our office or a student group. Right now I don’t think our office has the manpower to launch it, so it’d probably have to fall with the students.
  47. 47. 47 2) No -- we try to educate students/customers about sustainable purchasing, but don’t have direct partnerships with our campus stores or vendors to make sure what’s being sold is sustainable. Lots of times that’s because we have outside vendors (Starbucks, Dunkin Donuts) on campus, so we don’t have direct say over what they provide because they’re a franchise. We do occasionally work with our Purchasing department on ad hoc projects related to purchasing. We don’t have a say over everything that’s sold with our trademark at our stores, although we do supply some sustainability merchandise in our stores (reusable water bottles with our sustainNU brand on it). We’ve made sure that certain items with the university trade- mark are environmentally friendly, but not in our stores -- mostly as giveaways at orien- tation. For instance, this year we’re working with our student government and university bookstore, who normally give out t-shirts to incoming freshmen, to use a recycled content sustainable cotton option instead. With Purchasing, we mainly look at contracts we have with our vendors to determine where we can opt for more sustainable practices, particularly in delivery. So for instance, NU and a couple other schools are negotiating a contract with Office Depot that would ensure the schools get all their supplies delivered in reusable totes, which would greatly minimize our packaging waste. We’ve also been involved in setting up a contract with a scientific supplies company that will include pipette, glove, and lab coat recycling as part of our agreement with them. Our interactions with Purchasing mainly take that route right now, but we might look to do more collaboration with them in the future, for instance by strengthening Pur- chasing’s commitment to environmental sustainability in its policies or requiring purchasing of sustainable materials, like recycled content paper. 3) We’d look for the perceived impact -- are the eventual payoff/reduction/savings worth the time to invest in this project? A big concern is also manageability, as our office is only 3 people strong, which limits the campaigns we can take on. Most campaign-like initiatives are run by students with support from our office, so I think any more environmental cam- paigns that come our way would have to take on that same model. Appendix 6 - Collegiate Licensing Company The standard CLC license is one type of licensing intended for well-established companies with an established financial and selling history. Grant of this license will allow KeepCup to put university logos onto its products, making KeepCup a more attractive product for uni- versities and students in the U.S. The process for the application of this license takes a minimum of two months and varies depending on the rate at which KeepCup responds to document requests from CLC. The average application fee, for a standard 10 universities, is $12,875. (34) This figure depends on a variety of factors such as royalty fees demanded by each university as well as liability insurance required. Although CLC is the representative licensing company for the universi- ties, each university ultimately gets final approval on the licensing application.
  48. 48. 48 Appendix 7 - Project Charter
  49. 49. 49 1
  50. 50. 50
  51. 51. 51
  52. 52. 52 Appendix 8 - Data Collection Plan KeepCup Consulting Data Collection Plan Olivia Kong 764970 Krysten Gandhi 639998 Raviv Bull 615380 Roy Ho 626675 William Haveckin 638743
  53. 53. 53 How can KeepCup Increase sales in the University market? 2 1 1.1 Increase sales in the Australian University market. 2.1 Increase sales in the American University market. 1.1.1 Brand 1.1.2 Relationships 2.1.2 Geographic Expansion 2.1.1 Brand 1.1.1.1 Awareness 1.1.1.2 Loyalty 1.1.1.3 Equity 2.1.2.2 Customer Base 1.1.2.1 Potential 1.1.2.2 Existing 2.1.1.1 Awareness 2.1.1.2 Loyalty 2.1.1.3 Equity 2.1.2.1 Regulation Can brand awareness be improved to increase sales in Australia? Can brand loyalty be improved to increase sales in Australia? Can existing relationships be improved to increase sales? Can potential relationships increase sales? Can brand equity be improved to increase sales in Australia? Where in the US is the best customer base to target? What type of regulations pose the smallest barriers to entry? Can brand awareness be improved to increase sales in the US? Can brand loyalty be improved to increase sales in the US? Can brand equity be improved to increase sales in the US? KeepCup Consulting Logic Tree
  54. 54. 54 Ref. Inquiry Question: Data Type/Information Required Data Source Data Collection Method 1.1.1.1 How can brand awareness be improved to increase sales in Australia University sector? Ø  What level is brand awareness at? Ø  To what extent does improving brand awareness increase sales? Ø  Australian university students and employees. Ø  Frequent cafe goers. Primary Research Surveys, semi-structured interviews, user engagement outlets and social media channels. Secondary Research Reports on KeepCup 1.1.1.2 How can brand loyalty be improved to increase sales in Australia university sector? Ø  What level is brand loyalty at? Ø  To what extent does improving brand loyalty increase sales? Ø  Australian university students and employees. Ø  Frequent cafe goers. Primary Research Surveys, semi-structured interviews, user engagement outlets and social media channels. Secondary Research Reports on KeepCup 1.1.1.3 How can brand equity be improved to increase sales in Australia University sector? Ø  What level is brand equity at? Ø  To what extent does improving brand equity increase sales? Ø  Australian university students and employees. Ø  Frequent cafe goers. Primary Research Surveys, semi-structured interviews, user engagement outlets and social media channels. Secondary Research Reports on KeepCup 1.1.2.1 How can potential relationships increase sales? Ø  What opportunities are there to construct new relationships? Ø  How much will these potential relationships impact sales? Ø  Cafes managers/ owners, student clubs and societies which have not been previously approached. Primary Research Semi-structured Interviews and open ended questionnaires KeepCup Consulting Data Collection Table
  55. 55. 55 Ref. Inquiry Question: Data Type/Information Required Data Source Data Collection Method 1.1.2.2 How can existing relationships be improved to increase sales? Ø  What relationships currently exist? Ø  How much will improving these relationships increase sales? Ø  Partnered cafes and University Sustainability departments Primary Research Semi-structured Interviews and open-ended questionnaires. 2.1.1.1 How can brand awareness be improved to increase sales in the US? Ø  Should brand awareness be developed differently in the US? Ø  What level is brand awareness at? Ø  To what extent does improving brand awareness increase sales? Ø  US university representatives Ø  US university vendors Primary Research Semi-structured phone interviews, e-mails. Secondary Research Past advertising campaigns created by KeepCup (e.g. Kill the Cup). 2.1.1.2 How can brand loyalty be improved to increase sales in the US? Ø  What level is brand loyalty at? Ø  To what extent does improving brand loyalty increase sales? Ø  US university representatives Ø  US university vendors Primary Research Semi-structured phone interviews and e-mails. Secondary Research Past advertising campaigns created by KeepCup (e.g. Kill the Cup). 2.1.1.3 How can brand equity be improved to increase sales in the US? Ø  Should brand equity be developed differently in the US? Ø  What level is brand equity at? Ø  To what extent does improving brand equity increase sales? Ø  US university representatives Ø  US university vendors Primary Research Semi-structured phone interviews and e-mails. Secondary Research Past advertising campaigns created by KeepCup (e.g. Kill the Cup). KeepCup Consulting Data Collection Table
  56. 56. 56 Ref. Inquiry Question: Data Type/Information Required Data Source Data Collection Method 2.1.2.1 What problems does regulation pose to entry? Ø  What are the licensing costs? Ø  Which universities require licensing? Ø  What is the best entry strategy into universities? Ø  Collegiate Licensing Company (CLC) Ø  University Sustainability Offices Ø  University Campus Stores Ø  Student Union and Societies Primary Research Semi-structured phone interviews and emails. Secondary Research Licensing websites 2.1.2.2 What locations for KeepCup are most suitable for KeepCup to expand into? Ø  Where in the US will Keep Cup's message of sustainability resonate the most? Ø  Where in the US is coffee consumption the highest? Ø  Reports conducted on Coffee Culture in the US Ø  Research conducted on relative sentiment regarding sustainability by location Secondary Research Research papers and forums. KeepCup Consulting Data Collection Table
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