Brand-Building Strategy in the Coffee Industry

Branding is an essential consideration for any company. Successful branding determines not only the company's market share and profits, but also the ability of the company to compete for financing and other resources, such as employees. The coffee industry, already heavily "industry branded" by such coffee giants as Starbucks and Caribou Coffee, relies on branding to continue driving the boom the industry is enjoying. As recent economic considerations drive market leaders such as Starbucks to consider cost-cutting measures and other means to retain customers who grow increasingly cash-conscious, branding presents an awesome opportunity for an up-coming competitor in the marketplace (Businessweek, 2007).

The majority of coffee shop coffee drinkers tend to be in the under forty crowd, with the biggest market potential being in capturing the late teen market. Once people join the work force or go to college their tendency to drink coffee in general sharply increases, although as money issues grow, the gourmet market is expected to experience some sag. The key to capturing the coffee drinking consumer is branding. Coffee is a commodity and can be attained cheaply for home use from any grocery store; coffee shop prices are frequently three or more times the cost of brewing at home. Branding is more than simply an attitude or logo, it encapsulates who the company is, what the company stands for and what kind of person would patronize that company. The two, marketing strategy and overall strategy are intertwined.

In the modern corporate environment it is not enough to merely state what a company stands for, but action must follow words. Consumers are increasingly savvy and want to see companies that take an active leadership role in their communities (and always have). Consumers obviously prefer to support causes that they support or, at the very least, prefer that the causes do not directly conflict with their interests. In this way, it is highly critical that a company assess the consumer base to guard against offending the sensibilities of the base.

Furthermore, it is important for your brand to support and encourage the things your company stands for. For example, if a company strongly supports local economic growth the company should, whenever possible shop locally and prominently display locally-made items. The branding efforts must promote things about the Business that are real, not inflated promises or complete fabrications (Businessweek, 2007). Consumers are increasingly intelligent and savvy so false promises and surface-level modifications will not last long.

References:

Greg Helmstetter, "Increasing Hits and Selling More on Your Web Site" (John Wiley, 1997) Businessweek. Brand Building:Brand Building on a Larger-than-Life Scale. Accessed July, 2007 at: http://www.businessweek.com/mediacenter/podcasts/cuttingedge/cuttingedge_06_05_06.htm