Brand Reinvention of Coffeeshop Company - Case Study Example

UNDERSTANDING BUSINESS OBJECTIVES FROM AN ETHICAL PERSPECTIVE A. The Report Introduction…………………………………………………………………………… 3 Background and industry context of brand chosen ………………………………….. 4 Competitors …………………………………………………………………………. 5 Why the Brand need to evolve ……………………………………………………… 6 Challenges and Opportunities ………………………………………………………... 7 Process of selecting branding agency ……………………………………………….. 8 Chosen agency and justification …………………………………………………….. 8 B. The Plan Branding Brief ………………………………………………………………………. 9 Launch Plan …………………………………………………………………………. 9 Measurement Plan …………………………………………………………………… 9 Conclusion …………………………………………………………………………… 10 Bibliography …………………………………………………………………………. 12 Appendix …………………………………………………………………………….. 13 A. The Report Introduction Coffeeshop Company is an Austrian family enterprise and franchise, first opened in Vienna in 1999. The writing “Home in Vienna,” part of Coffeeshop’s logo, is connected with the first store opening in Vienna. Now the franchise operates in over 14 countries with 180 shops and a precise intention to expand further into the Eastern European market. According to Sabine (2008), in 2000, the company increased the number of its shops in Vienna, hoping to make a kill on the increasing numbers of people that showed preference for the company’s coffee alongside other services. The Coffeeshop has so far managed to win the so called US-American route’s “Carnival Cruise Line,” to become one of its main trading partners (Sabine 2008, p. 56). In this regard, the Coffeeshop can be said to be spreading its contemporary and hip concepts across major markets in the world. The first franchise that the company had closed its contracts with the Coffeeshop paving way for additional shops that have seen the company create and increase its market share (Bruining 2002, p. 32). According to Bruining (2002), so far, the total number of shops that the Coffeeshop has established has kept increasing, something which the company wants to rely on in its reinventing to reach more people in different markets. This paper examines the process of brand reinvention of the Coffeeshop Company, in a bid to increase its competitive advantage. Background and industry context of brand chosen In the beverage industry, many companies have been emerging in order to offer various goods and services. Many of them have been choosing on the concept of creating franchises in order to expand. In this case, the franchises have the companies’ brand name, but can operate various services depending on the culture of the regions in which they are established. The companies often assist the franchises in the process of getting started, advising them on effective management strategies and other approaches needed for success and excellence in the same industry. For Coffeeshop, the franchise system of business growth and expansion has been very successful especially in Germany and Australia, where the company has established most of its shops. Additionally, another approach that has also been doing well is that of creating mobile services; in this regard, the company establishes contacts with event organizers and planners, with the aim of getting space to offer coffee and other beverages that are presumed to be on demand in the given places (Sabine 2008, p. 72). The idea of setting mobile coffee shops stemmed from the need to increase its brand publicity and being the pioneer of this marketing strategy in Austria and other countries too. After a thorough thinking through the strategy, the company managed to assemble the entire necessary infrastructure that would assist in achieving this objective. It bought special vans that had all the tools and needed for a functional kitchen. In addition, it increased the number of staff so that while some would attend to the regular clients in the strategic locations within cities and other locations, there were others that would move around in the different events offering the coffee services. This strategy was a cash cow for the company, since it managed to increase its output and profits that were used in setting other coffee shops in the countries that it reached. The success of these two strategies saw Coffeeshop Company increase the number of shops in Austria and Germany to six. This was good news for the company because the industry was still very young; therefore it was quite easy to develop brand loyalty among customers that were very enthusiastic not just for the services the company was offering, but also the marketing approaches that were proving to be very effective for the company. In this regard, the company continued to expand tremendously, increasing its human capital requirements so as to handle the hundreds of activities that were increasing with each passing day in the company. Sabine (2008) observes that later, the company managed to established the second of its mobile shops in Germany making it a total of 11 cruise lines that were operating under the Schärf-Coffeeshop-Corner. Competitors Just like any other business industry, competition is one of the factors that business managers have to try and beat in order to remain relevant and successful in the industry. In the same way, the development of the Coffeeshop franchises in Germany and Austria did not fail to have similar competition. Following the success of the company, many other small shops have emerged in order to create and consolidate their market share, which had long been dominated by the Coffeeshop. One of the competitors of the company includes Oslo Kaffebar, which began operations long after Coffeeshop had set up its franchises. Although the company does not have vibrant marketing strategies like Coffeeshop Company, the company has managed to establish itself as the main competitor, should Coffeeshop relent in its marketing approaches and strategies. Another significant competitor for Coffeeshop Company include The Barn café, which has managed to set shops not far from the regions in which Coffeeshop company had established its shops. Despite the competition, the company has managed to set up 17 shops, which became operational in 2003 in Austria and Germany. Since 2004, the company devoted to increasing the number of franchises and expansions in the countries that were joining the EU as well as those in the Arabian markets in order to remain successful and competitive on the international front. Oslo Kaffebar Established Coffee shop in Germany The Barn café Established Coffee shop in Germany Why the Brand need to evolve Brand evolution for the Coffeeshop Company is aimed at increasing its relevance and success in a market that is increasingly becoming very competitive. In Germany alone, more than 25 coffee shops have so far been established, with many of them copying the mobile shop approach which Coffeeshop Company had used in the initial years of its entry in this market. Therefore, by changing its brand, the company will be effectively positioned to regain the once lucrative market that it enjoyed at the time of its development. At the company, the rebranding process will also be aimed at reminding customers of the services that the company has had and also informing of the new services that it has developed, which they can also enjoy once they visit the shop. Coffeeshop has had to change the style of its service delivery and brand in the process of improving and sustaining customer loyalty. In so doing, Coffeeshop will be assured of increased revenues not only from the customers that it already has but also in the new ones that the company will get because of a change of its business strategies. The process of brand evolution at the Coffeeshop Company is supposed to be a continuous process in any business that is geared towards having long term success and effective performance. Brand evolution stems from the fact that the business environment is one of the most dynamic, having customers that keep changing their tastes and preferences. In a bid to have huge rates of economic growth and development, many countries have ended up liberalizing their economies, allowing the establishment of many businesses in different industries, which is different from before when the government has the final say on the businesses to be registered in the country. Challenges and Opportunities The rebranding process, as pointed out above has many opportunities when implemented effectively. One of the main opportunities that the company stands to have in the rebranding process includes retention of its long held client base and an increase in the number of new clients, most of whom have been favorites to the competitor businesses. Any business will often want to have a large market share in order to increase its competitive prospects; therefore, it does not always want to spare any efforts that help it in the achievement of this important objective (Jolivot 2008, p. 27). One of the best ways of achieving this important objective is having an effective branding process and continuous rebranding in order to increase its relevance. According to Rosenthal (2011) however, inasmuch as the company hopes to increase its competitive advantage with the rebranding process, it has to overcome some challenges in this process. Part of it includes creating a new business image that has to appeal to the customers that have already pledged their loyalty to other companies that understand their needs much more than the international company. In overcoming this challenge, the company needs to consider employing some locals that will act as brand ambassadors advertising the company to its clients in the places identified. The company may have to spend more in the process of creating partnerships with these brand ambassadors who may include other companies that run media businesses, famous sports personalities including sponsorship of common events in the country (Kimakowitz 2011, p. 82). The company needs to ensure that the new brand strategies will capture and sustain long-term positive images for the company in order to increase its relevance. A good competitive strategy needs to have a lasting impression in the minds of clients, most of whom often want to be accustomed to one product, but will always want to test the products and services of any new company emerging. Selecting a branding agency According to Tzenadel (2008), selecting the right branding agency is one of the important strategies towards a successful rebranding process. However, despite the many advantages that a company is bound to have, the process of choosing the right branding agency is not always easy. A company needs to examine the track history of the agency in order to determine if it has the capacity to handle its marketing and branding needs. Coffeeshop Company, in its rebranding process, needs to sample different branding agencies and examine their performance history before deciding on one that will handle its branding process effectively. The branding agency should have the capacity to fit in the local market in the most effective way, which is the aim of the rebranding process. In this case, it is expected to position the company to articulate itself effectively in the local market. It has to understand the marketing needs and preferences of the company and where necessary advice the company according in order to achieve its rebranding goals and objectives. Chosen agency and justification After an examination of the different brands, Coffeeshop will settle on a branding agency that will prove to have the capacity to achieve its goals and objectives within the budget that the company will have. The chosen agency will be expected among many other things to present a time line in which it hopes to have completed setting the systems for the rebranding process. The given program will also include an evaluation system and criteria, which will help in determining the success of the marketing approaches set (Hammond & Hammond 2011, p. 41). After completion of this important process, the company will begin mapping out its expansion process in line with the success of the rebranding process. The company hopes to revive its once lucrative markets and increase its client base beyond its current reach. B. The Plan Branding Brief Elements The branding process at the Coffeeshop Company will aim at enabling the company to reach many of its clients, especially in the markets that it has not reached. For instance, reaching in the Arabian market, where the counties have a very different from those in countries that company has been before may require a brand strategy that appeals to people in this region. In general, people have a way of wanting to identify with brands that conform to their cultures and other related aspects. The company needs to choose colors that are in line with the culture of the place, including the communication approaches (Mayrhofer 2012, p. 54). The company will have to ensure that the franchises that it develops are those that have the capacity to achieve this objective, which calls for an investment in human resources that understand not only the local language but also other important aspects of company performance like organizational culture. However, it is important to realize that the actual plan and its implementation are the most appropriate for the company to achieve its set goals and objectives. Launch and measurement plan The launching of the plan will have to be specially organized in such a way that it will include brand ambassadors in order to get the necessary publicity. Measurement of the plan will have to be done on a periodical basis in order to identify some of the occasional drawbacks and correct them in the most appropriate manner. According to Coomber (2002), in any branding or marketing plan the process of measurement and evaluation is often very necessary in order to realize the shortfalls that are arising from the implementation process. It is important to realize that any plan geared towards the success of the company does not often have a guarantee that it will have a hundred percent success rate, which means that constant measurement and evaluation is needed to make corrections where they are realized to be (Miletsky & Smith 2009, p. 65). For the Coffeeshop Company, the Gantt chart in the appendix indicates the timelines that will be followed in the implementation and achievement of branding objectives. The company will be expected to create an effective marketing personnel that will play a central role in the achievement of the set plan. According to Clifton (2003), any developments that will be realized as having the ability to cause the company to fail in its rebranding process will be replaced and new strategies developed. For this plan to be successful, it will require the commitment of all the people in the company. Conclusion In conclusion, it important to acknowledge that the success of any business organisation depends on the effectiveness of the competitive strategies that it develops on a continuous basis. As noted before, business practices in modern times are the same as those that used to apply some decades ago. This is associated with the fact the business environment is very dynamic. Therefore, successful companies are those that are always abreast of these changes and develop competitive strategies in tandem with the particular developments. The Coffeeshop Company has also realized that at the time of its development, not many companies had realized the idea of offering coffee services as well as the marketing approaches that it used. However, currently, the styles are proving ineffective prompting the need for a re-invention of the competitive approaches that it is using in its business growth and development. According to Langen (2013), as the company expands to reach more markets that it had not reached, it is expected that it will develop competitive approaches that will enable it in its expansion in these markets and compete effectively with other business offering the same goods and services. Besides the rebranding process, the company should also consider the possibility of integrating technology in its business functions and processes like marketing (Calle 2008, p. 43). For instance, it could think of developing social media platforms through which it can reach many people that are unreached in the new markets it is reaching. Bibliography Bruining, W. 2002. The coffeeshop top 50. Great Card Company, Druten. Calle, C. 2008. Coffee with Einstein. Duncan Baird, London. Clifton, R. 2003. Brands and branding. Profile Books, London. Coomber, S. 2002. Branding. Capstone Pub, Oxford, U.K. Hammond, J., & Hammond, J. 2011. Branding your business promote your business, attract customers, build your brand through the power of emotion (Rev. ed.). Kogan Page, London. Jolivot, A. 2008. Marketing international. Dunod, Paris. Kimakowitz, E. 2011. Humanistic management in practice. Palgrave Macmillan, Basingstoke. Langen, N. 2013. Ethics in consumer choice an empirical analysis based on the example of coffee. Springer Gabler, Wiesbaden. Mayrhofer, U. 2012. Marketing international (2e édition. ed.). Économica, Paris. Miletsky, J., & Smith, G. 2009. Perspectives on branding. Course Learning, Boston, Mass. Rosenthal, E. 2011. The Big Book of Buds Marijuana Varieties from the Worlds Great Seed Breeders. Quick Trading Company, California. Sabine J. 2008. "Einsam an der Spitze" (in German), Coffee Business. Vol 3, no. 5, 20-23. Tzenadel, A. 2008. Food and globalization consumption, markets and politics in the modern world (English ed.). Berg, Oxford. Appendix: Branding Evaluation Gantt Chart Read More