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Cappucino Wars - The Battle for the High Street

Design Thinking presentation for re-design of a coffee cup.

Stelios Karasmanakis

on 21 October 2012

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Transcript of Cappucino Wars - The Battle for the High Street

2. Case Questions Maslow’s hierarchy of needs Table of Content Costa Coffee ? Why have coffee bars been so popular with consumers in the UK? Existing demand for hot beverages
-(bad weather conditions)

High quality coffee

Fast roll-out Strategies

Lifestyle * Combine
Ideas * Discuss pros
& cons of
ideas. * Finalize Design * Discuss ideas created through
individual prototyping. - Parts we like
(work well) - Parts we dislike
(don't work) The Battle for the High Street Presented by M J
S K 1. General Information 1. General Information
2. Case Questions
3. Questions ? Cappuccino Wars Coffee Shops in the UK
A refuge for writers and artists
grey, unapealing coffee served in a polystripe cup
More than 3000 stores 5 million Lattes,
cappuchinos & Espressoson a weekly basis Now Before the 1990s Founded
1971 in London
1995 acquired by Whitebread

2203 in 28 countries

£1,778.0 million Coffee Republic Founded
1995 in London
65 Caffé Nero   Founded
1997 in London

£165.5 million Starbucks Founded
March 30, 1971 in Seattle Washington
Acquisition of Seattle Coffee Company

19.972 in 60 countries


11.7 Billion Dollar ? You are considering visiting a coffee bar for the first time.

What would influence your choice of coffee bar to visit?

Is this likely to be a high- or low-involvement decision? Ehrenberg & Goodhard model High Involvement ! Assess the coffee chains' moves to expand the offerings they provide for their customers Customer Oriented
Strategy of Starbucks Company Worldwide presence
Standartized quality
Free wifi
In-store music store
Latest edition of magazines
& papers
Starbucks Card Diversification of products

Adress the five sences
- Tasting
- Touching
- Listening
- Smelling
- Seeing ? Coffee bars are mainly located in the centres of towns and cities.

Are there other locations where they could satisfy customer needs? Internal / Personal External / Social Influences Information process
Beliefs & Attitude
Life Cycle & Age
Perceptual Filter Culture
Social Class
Reference Group
Coffee Bar itself extensive evaluation
perceived consequences
opinion of others is important
high expenditure or personal risks e.g. car, home Fishbein & Ajzen model Low Involvement Simple evaluation
Simple tactics to reduce time & effort
Habititual behaviour
lower expenditure e.g. breakfast, coffee Awarness Trial Repeat
Purchase University Campus
Town Libraries
Shopping Center (outside of a Town)
On the motorways next to petrol stations
Bus and train stations / airport
Business Centre e.g. financial institutions Theory of the reasoned action (Syed & Hu) "Principles and Practice of Marketing" "<http://www.costa.co.uk/>" "<http://www.coffeerepublic.co.uk/>" "<http://www.caffenero.com/default.aspx?Lang=UK>" "<http://www.starbucks.de>" "Priciples and Practice of Marketing" "<maslowshierarchyofneeds.net>" "Principles and Practice of Marketing"
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