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Blue Bottle Coffee Co. Brand Audit

Golden Gate University Summer 2013

Professor Rodrigo Espinosa

Prepared By: Pei-Yi Wu

TODAY’S AGENDA Current Situation • Company Profile • CBBE Model • Target Segmentation • Competition Analysis • Positioning • Problems & Issues Recommended Branding Strategy • Integrated Marketing Communication • Effectiveness Measurement Conclusion 1 / 13

Current Situation

COMPANY PROFILE History: Founded in 2002 Value & Mission: To brew the most delicious and freshly roasted coffee, to create wonderful customer experience, and to contribute sustainability to the society. Product Line: Coffee, Pastry, Dessert, and Merchandise Unique Selling Point (USP): 48 hours Touchpoint: - B2C: 11 retail stores 5 farmers markets - B2B: 210 wholesale partners - Online website 2 / 13

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Self-Fulfillment • High quality • Professional • Worthy • Self-indulge Psychological Needs • Reliable Quality & Taste • Hospitality Service • Trust: Brand recognition Basic Needs • Caffeine • Thirst • Beverage 4 / 13

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TARGET SEGMENTATION Demographic: - Age 18-45 - Location (Bay Area & New York City) !

Psychographic: - Coffee savvy - Less price sensitive - Active social media users - Tourists

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COMPETITION ANALYSIS Coffee Roasters Blue Bottle Coffee


Points-of-Difference •Freshness (48 hours) •Creative pastries •Invisible location •Customize, variety •Convenience location •Loyalty program

Points-of-Parity •Established brand •Reliable quality •Social responsibility •Wholesalers •Pastries

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Dunkin' Donuts

•Product line •Loyalty program •Lower price

Philz Coffee

•Unique flavor coffee •Premium quality

Bicycle Coffee

•Small scale •Mobile coffee cart •Premium quality 6 / 13

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High Price

Low Price

Low Quality

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PROBLEMS & ISSUES Limited Brand Awareness

-Few locations -Business-to-business (wholesalers) -Solely rely on social media !

No Marketing Plan

-Not well-targeted customers -Utilize optimal marketing mix -No tools/indicators for evaluation -Not actively seek potential partnerships 8 / 13

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Branding Strategy

RECOMMENDED BRANDING STRATEGY Objectives 1.Build brand equity: Awareness & positive image 2.Increase touch points 3.Stimulate sales

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RECOMMENDED BRANDING STRATEGY Integrated Marketing Communication Plan Business to Customer

•Blue Bottle Coffee Carts - 3 schools area in California - Student discount: $1 off by check-in •Continue cuppings events & touring •Cause marketing

Business to Business

•Industry events Trade show, Food Shows & Conventions. •Personal selling •Direct mailing


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EFFECTIVENESS MEASUREMENT Sales Growth - B2C sales - ROI of IMC plan

Objectives Being Match? 1. Increase touch points 2.Build brand equity 3.Stimulate sales

Brand Equity - New customers acquisition (location traffic, yelp reviews) - Engagement rate (Google Analytics, Facebook Insights) - Survey (trade shows participants & customers)

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CONCLUSION Coffee industry: high demand Great potential: - CBBE: cultivate loyal customers - Differentiation from competitors

Integrated marketing communication - B2C: Coffee Carts, Cupping, Touring, Cause marketing - B2B: Industry events, Direct mailing, Personal selling

Stronger brand equity

11 / 13

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Thank You for your listening

Prepared By: Pei-Yi Wu


Prepared By: Pei-Yi Wu

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REFERENCES Blodget, H. (2012, September 13). Actually, The US smartphone revolution has entered the late innings. Business Insider.Retrieved from

! Blue Bottle Coffee Co. Reviews. (n.d.). Yelp. Reviews posted to blue-bottle-coffee-co-oakland-2#query:Blue%20Bottle%20Coffee%20Co

! Businesses: Blue Bottle Coffee. (n.d). Retrieved from Reference USA database.

! Duncan, B. (March 8, 2013). Personal communication.

! The Global Market Information Database. (2012, March) Hot Drinks in the US. Retrieved from

! The Huffington Post. (2011, June 27). By numbers: What Americans drink in a year. Retrieved from

! IBISWorld USA (2012, December). IBISWorld Industry Report 31192a: Coffee production in the US. Retrieved from IBSWorld USA database. 12 / 13

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REFERENCES (cont.) Marshall, G., W., Mark J., W. (2010). Marketing Management. McGraw-Hill/Irwin.

! National coffee drinking trend 2012. (n.d.). National Coffee Association. Retrieved from

! Neilson, L. (2013, Mar 5). At SFMOMA, You Can Have Your Art And Eat It Too. Food Republic. Retrieved from

! Shop. (n.d.). Blue Bottle Coffee. Retrieved from

! Summer & Winter Fancy Food Show. (2013). Specialty Food. Retrieved from http://

! Who are we. (n.d.). Blue Bottle Coffee. Retrieved from about/who-we-are/

! 2010 Behaviors & attitudes: Portrait of the coffee consumer: the impact of age, gender & ethnicity on consumer behaviors & attitudes. (n.d.). National Coffee Association. Retrieved from 13 / 13

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