Brand Strategy Report: Market Lane Coffee -...

Prepared by: Kitti Hunter for MKG322 Brand Management

Brand Strategy Report: Market Lane Coffee

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Table of Contents

1.0 INTRODUCTION 3

2.0 BACKGROUND TO COMPANY, INDUSTRY AND PRODUCT 4

2.1 CLIENT & PRODUCT 4 2.2 BRAND ELEMENTS ANALYSIS 5 TABLE 1: BRAND ELEMENT ANALYSIS MARKET LANE COFFEE 5 2.3 MACRO ENVIRONMENTAL ANALYSIS 8 TABLE 2 MARCO ENVIRONMENTAL ANALYSIS 8

3.0 THE KEY SOURCES OF BRAND EQUITY (BRAND AWARENESS AND BRAND IMAGE) 13

3.1 EVALUATE BRAND RECOGNITION AND RECALL USING TOMA FIGURE 13 FIGURE 1: TOP OF MIND AWARENESS (TOMA) 14 3.2 EVALUATION OF BRAND IMAGE 14 TABLE 3: EVALUATION OF MARKET LANE BRAND IMAGE 14 3.3 COMPETITOR ANALYSIS 17 TABLE 4: COMPETITIVE ANALYSIS TABLE 17

4.0 BRAND POSITIONING 30

4.1 WHAT IS THE BRAND’S COMPETITIVE ‘FRAME OF REFERENCE’? WHAT DOES YOUR CLIENT'S BRAND ‘DO’ FOR THE CONSUMER THAT IS DIFFERENT TO THE COMPETITORS? 30 TABLE 5: METHODS TO CONVEY CATEGORY MEMBERSHIP FOR MARKET LANE COFFEE 30 4.2 WHAT IS THE APPARENT BRAND POSITIONING? 31 FIGURE 2: MARKET LANE PERCEPTION MAP 32 FIGURE 3: PERCEPTUAL POSITIONING MAP IDEAL LOCATION 33

5.0 BRAND RESONANCE MODEL 34

FIGURE 4: BRAND RESONANCE PYRAMID 34 FIGURE 5: SUB DIMENSIONS OF BRAND BUILDING BLOCKS 35 5.1 SALIENCE - TO WHAT EXTENT HAS THE ORGANISATION ACHIEVED BOTH BREADTH AND DEPTH OF BRAND AWARENESS? 35 5.2 PERFORMANCE - HOW WELL DOES THE BRAND APPEAR TO MEET CUSTOMERS’ FUNCTIONAL NEEDS AND HOW DO CUSTOMERS VIEW THE PERFORMANCE OF THE BRAND INCLUDING SERVICE ASPECTS? 36 TABLE 6: PERFORMANCE PROFILE 36 5.3 IMAGERY - HOW WELL DOES THE BRAND APPEAR TO MEET CUSTOMERS’ PSYCHOLOGICAL AND SOCIAL NEEDS AND HOW DO CUSTOMERS VIEW THE BRAND IN TERMS OF INTANGIBLE ASPECTS? 38 TABLE 7: BRAND IMAGERY PROFILE 38 5.4 JUDGEMENTS - HOW IS THE BRAND VIEWED OVERALL IN TERMS OF QUALITY, CREDIBILITY, CONSIDERATION AND SUPERIORITY? 39 TABLE 8: BRAND JUDGEMENTS 40 5.5 FEELINGS - WHAT ARE CUSTOMERS’ EMOTIONAL RESPONSES AND REACTIONS? WHAT TYPES OF BRAND FEELINGS ARE EVOKED BY THE BRAND? 41 5.6 RESONANCE - WHAT IS THE NATURE OF THE RELATIONSHIP CUSTOMERS HAVE WITH THE BRAND? CONSIDER LOYALTY, ATTACHMENT, SENSE OF COMMUNITY AND ENGAGEMENT? 42 TABLE 9: BRAND RESONANCE CATEGORY 42

6.0 CONCLUSION 44

REFERENCE LIST 45

APPENDICES 48

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1.0 Introduction

The following report has been authorised by Dr Wendy Spinks of the University of the Sunshine Coast. The purpose of

this report is to provide a detailed analysis of either an Australian or International smaller goods and/or service

provider, identifying current branding strategies.

This report will analyse the branding strategies of Melbourne-based smaller service provider, Market Lane Coffee Pty

Ltd. Market Lane first opened in 2009 at Prahan Market and since then has expanded by opening three other stores

in Therry Street, Carlton and Queen Victoria Market (Market Lane Our Shops 2016). This small, specialised coffee

boutique prides themselves on quality, offering seasonal, ethical coffee beans that are roasted and brewed on site

(Market Lane Coffee our-story 2016). Market Lane Coffee’s mission is to ‘make good coffee accessible and exciting,

simple to understand and appreciate and easy to brew and enjoy’ (Market Lane Coffee our-story 2016).

The report will evaluate brand elements, macro environmental analysis, key sources of brand equity, the competitors

table, the brand positioning and the brand resonance model. This report will identify the key strengths and weaknesses

of the organisation, as well as how well the company has achieved each area of the CBBE for current and potential

customers.

The research methods and sources used to gain the information outlined within this report include secondary research

using ABS, IBIS World, Emerald, Proquest, Google Scholar, EBSCO Host and textbooks. This included using peer

reviewed journal articles, thesis statements, and case studies and data sources.

2.0 Background to company, industry and product

2.1 Client & Product

Market Lane Coffee is a Melbourne-based brand that specialises in boutique coffee of highest quality (Market Lane Coffee our-story 2016). The company

opened their first shop and roaster at Prahan Market in 2009 and since then has expanded by opening three other stores in Therry Street, Carlton and Queen

Victoria Market (Market Lane Our Shops 2016). Market Lane Coffee engages with outsourcing coffee beans to provide customers with the most exquisite and

best-tasting coffee (Market Lane Coffee our-story 2016). The coffee beans served are always in season and are roasted at the Prahran Market store to ensure

that the coffee is always fresh and of the best quality. Market Lane Coffee’s mission is to ‘make good coffee accessible and exciting, simple to understand and

appreciate and easy to brew and enjoy’ (Market Lane Coffee our-story 2016). In order to align to their mission, Market Lane Coffee—among other operations—

provide classes for brewing and roasting.

Melbourne City alone contributes to 28.6% of the café establishments within the whole of Australia (IBIS World 2016). Evidently, Market Lane Coffee will be

reaching the desired target market, and must consider the vast amount of competitors within the area and aim to gain competitive advantage and market

differentiation (IBIS World 2016). According to IBIS World, the coffee and café industry report on Australia (2016), there has been substantial growth over the

past five years within the coffee industry that is directly related to Australia’s growing love for the coffee culture. The industry revenue is projected to grow

by 8.4%, to $5.3 billion between 2015-2016 (IBIS World 2016). Coffee industry revenue is projected to increase by a steady 2.5% over the next five years and

to reach approximately $6 billion (IBIS World 2016). Appendix B depicts the growth in the coffee industry from 2003-2016. The annual profits for the coffee

industry within Australia is a combined total of $208 million (IBIS World 2016).

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The product of Market Lane Coffee is the coffee itself, the coffee beans, coffee accessories, books and the coffee roasting and brewing classes offered, making

the product consist of both tangible and intangible elements. Consumers will use the high-in-experience qualities and search qualities when deciding whether

to try it or not. Products can be explained using three levels: the core product; the actual or expected product; and the Augmented product (Solomon et al.

2014). Refer to Table 4: Competitors Analysis for a detailed analysis on Market Lane explained using the three product levels.

2.2 Brand Elements Analysis

Keller (1993) Identifies the six criteria for choosing brand elements include: memorability, meaningfulness, liability, transferability, adaptability and

protectability.

Table 1: Brand element analysis Market Lane Coffee

Brand Elements

Definition Analysis

1. Memorability Easily recognised

Easily recalled

Market Lane Coffee has a level of brand awareness

locally but expansion is required to branch out

nationally and internationally (Yoo, Donthu & Lee

2000).

The brand is easily recognised as the coffee cups all

have distinctive writing on them: ‘we love to make

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coffee for the city that loves to drink it’. Further

development of recall could be implemented to

enhance memorability.

2. Meaningfulness Descriptive

Persuasive

The brand name provides descriptive meaning as the

lane is where the shop is located and the product is

coffee, making it easy for the consumer to identify the

product category. Market Lane Coffee must strategise

methods to incorporate aspects of persuasion (Samu &

Krishnan 2010). The brand name provides a key point

of difference, distinguishing them from competitors as

they roast and brew their own coffee that is in season.

This brand identifies those consumers that are

interested in the coffee experience and knowing

exactly where the coffee comes from.

3. Likability Fun and interesting

Rich visual and verbal imagery

Aesthetically pleasing

Market Lane Coffee presents many aesthetically

pleasing elements. The coffee cups, store presentation

and products are all visually pleasing. The coffee beans

that can be purchased are packaged with natural

colors, providing an emphasis on the bright colors with

the product name stated in typography.

The stores all have unique décor that is aesthetically

pleasing and very interesting.

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4. Transferability Within and across product categories

Across geographical boundaries and cultures

The brand name ‘Market Lane Coffee’ is easily

transferable for geographic market segments (Keller,

Heckler & Houston 1998). However there are limited

opportunities for line or category extensions as the

name is limited to coffee. For example Market Lane

Coffee could branch out to focus more on food;

however the name itself is limiting.

5. Adaptability Flexibility

Updatable

The brand is easily adaptable over time and has

expanded, offering customers more locations. The

coffee cups change constantly with new quotes.

Market Lane Coffee is highly engaged with social

media, which enables them to connect with consumers

and identify consumer values and opinions, and adapt

to those needs.

6. Protectability Legally

Competitively

Market Lane Coffee has formally registered with

appropriate legal bodies (Melbourne Coffee Merchants

Pty Limited).

The name and packaging can be copied and, if so, the

uniqueness of the brand.

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2.3 Macro environmental analysis

Table 2 Marco environmental analysis

Analysis Influence Opportunity & Threat

Political Increased taxes Opportunity:

Increase prices of products to account for increased taxes.

Threat:

Import/export prices may increase causing the company to have a greater expenditure for the coffee beans.

Political Competitive Regulation Opportunity

Increased regulation in the number of cafés/coffee shops permitted within the same geographic area, generating greater probability

to Market Lane Coffee.

Threat

There may be an increase in the number of cafes and coffee shops that offer the same/similar products, which may result in loss of

revenue.

Political Employment & operational

laws

Opportunity

Penalty rates on public holidays, weekends etc. may drop, resulting in increased trading hours and probability for Market Lane.

Threat

Employees may not be intrinsically motivated to work on holidays as they receive minimal benefits (Carroll 2011).

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Political Increased regulation of

international trading

Opportunity:

Further development of relationships with coffee bean plantations by adhering to the fair trade practices, and in turn gaining a

competitive advantage (Peterson 2013).

Threat:

Possibility of scrutiny for outsourcing of products and fair work and trade practice assessments within developing countries.

Economic

Growth Rates Opportunity;

More residents/coffee drinkers moving to the area, creating increased demand and probability for the company.

Threat:

As more residents/coffee drinkers move to the area the company may not be able to accommodate the demand

Economic Economic recession Opportunity:

Market Lane Coffee could utilise the economic downfall to drop coffee prices.

Threats

Many avid coffee drinkers may opt to buy the coffee somewhere cheaper, or simply go without.

Economic Local economic

environment in different

markets

Opportunity

Locational change to reach a different market share and increase probability.

Threat

The price of local product, suppliers and rent becomes too high to operate profitably.

Socio-cultural

factors

Reduced disposable Income

Level

Opportunity:

Market Lane Coffee could expand their consumer base to include the buyers from the lower- and the middle-income earners to build

consumer loyalty.

Threat:

This may result in decreased quality.

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Socio-cultural

factors

Consumer preferences Opportunities

Consumers may prefer to choose Market Lane Coffee as they are differentiated from other cafes and provide greater quality (Irmak,

Vallen & Sen 2010).

Threats

There may be another competitors that offer a similar product with greater quality and value for money.

Socio-cultural

factors

Changes in lifestyles of

population

Opportunities

One of the main identifiable target market ages is the ‘baby boomer’, who are now retiring; this presents the opportunity to move

towards appealing to the younger generation.

Threat

Many baby boomers will have a decreased disposable income and will therefore be less likely to purchase a luxury good such as

coffee.

Socio-cultural

factors

The level of education of the

population in local markets

Opportunity

Provide a knowledge basis of the benefits associated with drinking coffee and differentiate between ethical coffee beans that Market

Lane Coffee offers compared to competitors within the market (Simpson-Law 2009).

Threat

Uneducated of the quality, ethical standards and location of the Market Lane Coffee’s products.

Socio-cultural

factors

Changing values among

population

Opportunity

Consumers of the younger generation may value the ethical standards of where the coffee comes from in decision-making basis and

therefore choose Market Lane Coffee over competitors (De Pelsmacker, Driesen & Rayp 2005).

Threat

Market Lane Coffee may need to reevaluate whether the company meets the new ethical standards for outsourcing coffee beans.

Technological Emergence of innovative Opportunity

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technology To embrace the new technological area, creating competitive advantage and brand awareness for Market Lane Coffee.

Threats

Market Lane Coffee will need to keep up-to-date with the latest emergence of technology in order to usefully implement it in the

organisation.

Technological Biotechnological and

agricultural developments

Opportunity

Integration of biotechnological, locally grown and manufactured coffee beans.

Threat

If Market Lane Coffee did not embrace such technology, this may result in loss of profitability to competitors.

Technological Social media Opportunity

Further engagement, interaction and brand awareness can be generated through successful interaction with social media.

Threats

If Market Lane Coffee do not continually update and engage with consumers, this could potentially diminish the organisation’s

success.

Environmental Environmental rules and

regulations

Opportunity

Integrate environmentally sustainable waste management, recycling and energy-efficient practices as a market differentiation from

competitors (Betts 2012).

Threat

Increased regulation of waste management and recycling practices.

Environmental Environmental disasters in

countries which produce

coffee beans

Opportunity

To outsource to other areas and increase market opportunities.

Threats

Inability to source coffee beans, resulting in loss of profitability.

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Environmental Environmental advocacy

groups

Opportunity

Develop consumer trust through complying with environmental wellbeing practices.

Threats

Environmental advocacy groups may have a direct impact upon the supply, production and manufacturing of the coffee beans.

Legal Introduction of stricter

customs and trade

regulations

Opportunity

Manufacturing of the coffee beans, in turn boosting the local economy, creating opportunities for the business.

Threat

Strict trade regulations may lead to inability to supply consumers with the product.

Legal Employment Law Opportunity

Employment levels are increased and more jobs created, more money available to be spent on coffee.

Threat

Allowance benefits may be reduced, resulting in consumers not being able to afford coffee.

3.0 The key sources of brand equity (brand awareness and brand image)

3.1 Evaluate brand recognition and recall using TOMA figure

Brand recognition refers to a consumer’s ability to recognise the brand as a result of level of exposure to that brand

(Keller 2008). Brand recall refers to a consumer’s ability to generate prior knowledge of the brand from memory when

given the particular product as a result of a purchase or situational cue (Keller 2008). In relation to Market Lane Coffee,

brand recognition is easy for the consumer through the different branding strategies on the takeaway cups and the

overall appearance and presentation of the store. In relation to the brand recall for Market Lane Coffee, consumers

that live within the geographical area of Melbourne are highly aware of Market Lane, as it is considered one of the

best in the city. A way in which Market Lane Coffee differentiate themselves to their competitors is through their

clever wording on takeaway cups: ‘we love to make coffee for the city that loves to drink it’. Consumer decision-making

processes are usually made at the point of purchase, where the brand logo, name, and packaging are physically

present, and brand recognition will then play an important aspect in the decision-making process (Peterson, Kerin &

Ross 1979). Market Lane Coffee does not implement traditional forms of media to engage consumer awareness;

currently the company does implement aspects of social media to attempt to reach Top Of Mind Awareness. Figure 1:

Top Of Mind Awareness (TOMA) identifies the different stages in which a company gains awareness. Through the use

of social media mediums such as Instagram and Facebook, Market Lane Coffee successfully reach brand recall within

Melbourne CBD, however, from a national perspective, the company has not reached brand recognition stage. Market

Lane Coffee utilises social media to encourage customers to share and post photos and generate greater consumer

awareness. The company also frequently engage with and update their social media accounts to ensure that

consumers are informed of the latest seasonal coffee beans and promotions on offer.

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Figure 1: Top Of Mind Awareness (TOMA)

Source: Spinks, W 2016, ‘Lecture 2’, MKG322 Brand Management, learning materials on Blackboard, University Of The Sunshine

Coast, 10 April 2016.

3.2 Evaluation of brand image

The following table—Table 3: Evaluation of Market Lane Brand Image—identifies the strengths (relevance and

consistency), the favourable (desirable and deliverable) and unique points of the brand associations for Market Lane

Coffee.

Table 3: Evaluation Of Market Lane Brand Image

Types of Association Definition Market Lane

Strength of Brand Association When a consumer thinks about product

information and relates it to pre-existing

brand knowledge, this will create stronger

brand knowledge. There are two factors

that strengthen association with a piece of

information: personal relevance and

consistency (Cochen Wu Yung-Chien Yen

2007).

Evidently, Market Lane Coffee has a

personal relevance to consumers as

identified in the target market, which

consists of employees and commuters

with middle to high disposable incomes.

Geographically, Melbourne is considered

to have the most consumers of coffee in

the state; it is a part of their everyday lives

and provides them with sustained energy

throughout the day. The brand itself uses

clever relevance through printing on the

coffee cups—‘we love to make coffee for

the city that loves to drink it’—and this

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provides the consumer with a sense of

belonging and direct relevance to

themselves, creating personal relevance

and strength association through the

information. Market Lane Coffee also

offer brewing and roasting classes to

enable consumers to feel more involved in

the process. The consistency of Market

Lane Coffee’s advertising through the

clever printing on the coffee cups and

through updating social media provides

consistency with the product.

Favourability of Brand Association Marketers create favourable brand

associations by convincing consumers that

the brand possesses attributes and

benefits that are able to satisfy their

needs and wants. The favourable

associations are those that are desirable

to consumers—convenient, reliable,

effective, efficient, colorful—successfully

delivered by the product, and conveyed

by the supporting marketing program

(Elena Delgado-Ballester Angeles Navarro

María Sicilia 2012).

Market Lane Coffee has favourable

associations for consumers as they

convince consumers that the brand

possesses relevant attributes and

benefits that satisfy their needs and

wants, such as their ethical coffee beans,

high quality and considerations that

create positive overall brand judgements.

In relation to desirability, Market Lane

Coffee provides consumers with

distinctive, relevant and believable brand

associations in regards to the quality and

the ethical coffee beans. Market Lane

Coffee’s product is generally consistent;

however the coffee beans change

seasonally so they cannot always deliver

the same product. Market Lane Coffee

currently utilise their exceptional quality

and seasonal coffee beans to reiterate

the advantages of their performance. In

regards to the quality and coffee beans,

this may differ in regards to the

sustainability over time depending on

where the beans are outsourced from.

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Uniqueness of Brand Association The essence of brand positioning is that

the brand has a sustainable competitive

advantage or a ‘unique selling

proposition’ that gives consumers a

compelling reason why they should buy it

(French & Smith 2013).

Market Lane Coffee’s unique selling

proposition is that they outsource coffee

beans that are seasonal, ethically traded

and they provide the highest quality. They

also differentiate themselves from

competitors in the market by providing

consumers with opportunities to

undertake classes in roasting and brewing

coffee to enable everyone to appreciate

coffee. This aligns with Market Lane’s

Mission statement: ‘make good coffee

accessible and exciting, simple to

understand and appreciate and easy to

brew and enjoy’ (Market Lane Coffee our-

story 2016).

3.3 Competitor analysis

Table 4: Competitive Analysis Table

Competitive analysis Market Lane Coffee Manchester Press Little Wish Cafe Dukes Coffee

% Market share 46% of the population consume

coffee (ABS 2016).

46% of the population consume

coffee (ABS 2016).


coffee (ABS 2016).


coffee (ABS 2016).

Size of target market Employees, commuters, residents

and tourists visiting the area.

Employees, commuters, residents






Demographics

Age: The consumption of coffee is

closely associated with age. The age

for consumption of coffee is between

19 -70 year olds. One in three people

or 34% aged between 19-30 years

consume coffee and two in three

people aged between 51-70 or 66%

consume coffee (ABS 2016).

Gender: Equally male and female.

Income: Middle income, high income

and fourth income earners (IBIS

2016). Coffee is considered a luxury

good.













good.













good.













good.

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Geographical location

Market Lane Coffee has three

locations: Therry Street, Carlton and

Queen Victoria Market (Market Lane

Our Shops 2016).

In order to identify competitors for

the purpose of this report, there will

be a focus on the Market Lane Coffee

shop in Therry street.

Melbourne CBD, close to office

buildings, shopping precincts, Queen

Victoria Markets, exhibitions centre,

crown entertainment complex,

Etihad stadium and other popular

restaurants.

Manchester Press is located on

Ratkins Lane, tucked away.

Melbourne CBD, close to businesses,

shopping precincts, Queen Victoria

Markets, exhibitions centre, crown

entertainment complex, Etihad

stadium and other popular

restaurants.

Little Wish Cafe is located on Little

Collins Street, tucked away behind

Bourke St between King and William

St.






restaurants.

Dukes Cafe has three locations:

Wellington Street, Collingwood,

Derby Street, Flinders Lane Perth

Roaster in Ladner Street.

In order to identify competitors for

the purpose of this report, there will

be a focus Dukes Coffee Flinders lane.






restaurants.

Psychographics

The coffee consumer’s

psychographics include: social need

with colleges, meetings, friends or

family, acts as a relaxant (reduces

stress), part of a routine, social

acceptance, some rely on it to wake

them up (not as tired).






















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Consumer behavioural

patterns

According to the ABS (2016) the

average amount of coffee

consumption in Australia is 330mls

(one large mug) per day. Many

commuters purchase coffee as part

of their daily ritual on their way to

work or university, 4-5 times per

week. High coffee

consumption/regular use.








week. High coffee









week. High coffee









week. High coffee


Brand attributes

Product

- Core need

The core need consists of the benefits

that the product provides to the

consumer to make it valuable

(Solomon et al. 2014). For Market

Lane Coffee, the core product or

need includes image enhancement

associated with purchasing coffee

from one of the best locations,

satisfying of craving, providing

opportunities for social interaction,

and caffeine to energise throughout

the day.




(Solomon et al. 2014). For

Manchester Press, the core product

or need includes image enhancement






the day.




(Solomon et al. 2014). For Little Wish

Café, the core product or need

includes image enhancement






the day.




(Solomon et al. 2014). For Dukes

Coffee, the core product or need

includes image enhancement






the day.

- Actual

The actual product is the physical

good or the service that provides the

consumer with the desired benefit

(Solomon et al. 2014). Market Lane

Coffee’s actual product includes: the




(Solomon et al. 2014). The actual

product that Manchester Press offers




(Solomon et al. 2014). Little Wish

Cafe’s actual product is the coffee




(Solomon et al. 2014). The actual

product that Dukes Coffee offers to

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actual coffee (the beans are roasted

in store fresh and only use in season

coffee beans); the packaging of the

products including the coffee cups

that have quotes on them; visually

pleasing store presentation and

products; and the coffee beans that

can be purchased and that are

packaged with natural colors,

providing an emphasis on the bright

colors with the product name stated

in typography. The stores all have

unique décor that is aesthetically

pleasing and very interesting.

consumers is the coffee, and

consumers can choose a form of art

on their coffee. The packaging of the

coffee cups is innovative and

contemporary; store presentation is

light, airy, contemporary and

welcoming. The shop décor is unique

and adds character to the whole

experience.

(the beans are locally roasted using

top quality code black coffee beans)

(Little Wish Coffee House 2016). The

packaging of the coffee cups has

typography on them with

inspirational quotes. The store

presentation is quaint, visually

pleasing, and contrasts the dark

exterior with elements of warmth in

the interior, to make it more

welcoming.

the consumer is the coffee (locally

roasted specialty coffee beans). The

packaging of the coffee beans is

visually attractive, contrasting the

dark background of the packaging

with bright and vibrant colours with

the origin’s flag as the main feature.

The store presentation is minimalistic

from the exterior and has an old-

fashioned English pub theme with

elements of contemporary aspects in

the lighting.

- Augmented

The augmented product is the actual

product including any additional

features to ensure that the company

has a competitive advantage

(Solomon et al. 2014). Market Lane

Coffee provides customers with

specialty coffee beans that are in

season. The coffee beans are also

sold, alongside equipment to allow

the consumers to make the coffee for

themselves at home. Market Lane

Coffee also offers an exclusive coffee

club where they deliver the coffee





(Solomon et al. 2014). Manchester

Press provides customers with a

variety of options in regards to milk

alternatives, coffee bean choices,

bagels and aesthetically pleasing

food and coffee.





(Solomon et al. 2014). Little Wish

Cafe provide customers with a

number of milk alternatives, coffee

bean choices, healthy desserts and

meals. The cafe also offers specials

for combining coffee with choices on

the menu to provide a competitive

advantage. Only the best coffee





(Solomon et al. 2014). Dukes Coffee

provides consumers with specialty in-

season coffee beans that are ethically

traded and sourced from individual

farms or small cooperatives (Dukes

Coffee about us 2016). Dukes also

offer a variety of options in regards to

milk alternatives and additional

meals and sweets. The coffee beans

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whole beans/grinded beans to your

door fortnightly for 3 months, 6

months, or an ongoing subscription.

Market Lane Coffee also holds classes

for roasting and brewing the coffee—

this aligns with their mission: ‘make

good coffee accessible and exciting,

simple to understand and appreciate

and easy to brew and enjoy’ (Market

Lane Coffee our-story 2016).

beans (code black) are used to ensure

quality.

are sold alongside merchandise and

brewing equipment, and

subscriptions are offered for

consumers who prefer to brew their

own coffee.

Place/ Distribution

The customer makes an order and

the staff bring it to your table if you

are having it in or call your name out

if it is a takeaway.

Market Lane Coffee also offers a

home delivery service for their

coffee beans fortnightly for

members.













Price/Value

Market Lane Coffee’s current prices

are listed in Appendix A. The average

cost of a coffee is $5.00.

Manchester Press prices for coffee

average $4.00.

Little Wish Cafe prices for coffee

average at $4.50.

Dukes Coffee prices for coffee

average at $4.50.

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MarCom mix

• Media Advertising

• Digital

• Sales Promotion

• Interactive

Marketing

• Media Advertising: Non-

existent media adverting apart

from social media

• Digital: Internet digital

advertising, newsletter,

Facebook, Instagram etc.

• Sales Promotion: No existent

sales promotion

• Interactive Marketing: No

interactive marketing



from social media





sales promotion





from social media





sales promotion





from social media





sales promotion



People/ employees

Waiter/waitress, chefs, barristers,

customer service, instructors for the

roasting and brewing lessons,

delivery driver.


customer service.


customer service.


customer service.

Process of purchase

(Responsiveness,

assurance, & reliability)

• Responsiveness: Delayed

responses due to large number

of customers

• Assurance: Market Lane Coffee

provides the consumer with the

highest quality coffee

• Reliability: Not very reliable as

the waiting time for each

purchase differs as does the

coffee flavor that is in season and

• Responsiveness: Delayed

responses due to large number

of customers

• Assurance: Manchester Press

will always pride high quality

coffee and an excellent service

• Reliability: Very reliable and

consistent with flavours all year

• Responsiveness: Fast response

to customers

• Assurance: Little Wish Cafe

provides above average quality

coffee and exceptional customer

service

• Reliability: Somewhat unreliable;

many customers did not quite

receive what they asked for

• Responsiveness: Fast response

to customers and very helpful

• Assurance: Dukes Coffee

provides exceptional quality

coffee and customer service

• Reliability: Very reliable service

performance

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therefore offered to the

consumers

Physical evidence/

Tangibles

Physical evidence: the physical

environment where the exchange

takes place. For Market Lane Coffee,

this is the coffee shop itself, which is

aesthetically pleasing.

Tangibles: The tangibles refer to the

object that the consumer receives,

which is the coffee.



takes place. For Manchester Press,

this is the coffee shop, which

provides unique decor and an

excellent atmosphere.

Tangibles: The tangible product for

Manchester press is the coffee, which

the consumer receives.



takes place. For Little Wish Cafe this

is the coffee shop, which provides

unique decor and an excellent

atmosphere.


Little Wish Cafe is the coffee, which

the consumer receives.



takes place. For Dukes Coffee this is

the coffee shop, which provides

unique decor and an excellent

atmosphere.


Dukes Coffee is the coffee, which the

consumer receives.

Brand benefits

• Functional

• Symbolic

• Experiential

Brand benefits are the personal value

and meaning that consumers attach

to the product or service attributes

(Keller 2013).

Functional benefits are the more

intrinsic advantages of product

consumption and usually correspond

to the product-related attributes.

These benefits often are linked to

fairly basic motivations, such as

physiological and safety needs

(Maslow 1970), and involve a desire

for problem removal or avoidance

In regards to the consumption of

coffee this satisfies the consumer’s

personal values and needs associated

with providing them with energy and

a beverage. Consuming coffee

satisfies an individual’s safety and

security needs, providing them with

stability and ensuring that through

consuming the beverage they will

have a successful day.

Many avid coffee consumers fulfill

their social needs of belongingness

through drinking coffee and



























24

(Fennell 1978; Rossiter and Percy

1987).











Symbolic benefits are the more

extrinsic advantages of product

consumption. They usually

correspond to non-product-related

attributes and relate to underlying

needs for social approval or personal

expression and outer-directed self-

esteem. Hence, consumers may value

the prestige, exclusivity, or

fashionability of a brand because of

how it relates to their self-concept

(Solomon 1983).

combining this with a social

interaction: friendship and affection.

As coffee is considered a luxury good,

this provides consumers with

egotistical needs of status and

prestige.

The experiential benefits that are

associated with the consumption of

coffee including the consumer being

provided with a coffee that is of high

quality and calibre, while meeting

their sensory requirements and

cognitive stimulation.






prestige.













prestige.








25









prestige.

Experiential marketing seeks

opportunities to connect with

consumers by engaging in a sensory

way and drawing upon a consumer’s

personal experiences.

Experiential benefits relate to what it

feels like to use the product and also

usually corresponds to the product-

related attributes. These benefits

satisfy experiential needs such as

sensory pleasure, variety, and





26





• Points of Parity

(POPS)

Points of parity associations (POPs)

are not necessarily unique to the

brand but may in fact be shared with

other brands. There are three types:

category, competitive and

correlational (Keller 2013).

Category: In relation to Market Lane

Coffee the identifiable category

points-of-parity refers to the

expected high quality coffee taste as

they are roasted on site like Dukes

Cafe, presentation and service

encountered

Competitive: Market Lane Coffee’s

competitive points of parity refer to

the inclusion of ethically outsourced

coffee beans which competitor Dukes

Café also offers as a point of

difference.

Correlational: N/A

Category: Expected High level of

quality and taste in relation to other

competitor’s within the market that

offer differentiated products.

Competitive: milk alternatives, coffee

bean choices, bagels and

aesthetically pleasing food and

coffee.

Correlational: N/A

Category: High Level of quality

expected in relation to competitors.

Competitive: Wish Café provide

customers with a number of milk


healthy deserts and meals. The café

also offer specials for combining

coffee with choices of the menu to

provide competitive advantage. Only

the best coffee beans (code black) are

used to ensure quality.

Correlational: N/A

Category: The expected high quality

coffee taste as they are roasted on

site like Market Lane, presentation

and service encountered

Competitive: Dukes Café competitive

points of parity refer to the inclusion

of ethically outsourced coffee beans

which competitor Market Lane also

offers as a point of difference.

Correlational: N/A

27

• Points of

Difference

(PODs)

Points of Difference associations

(PODs) are formally defined as

attributes or benefits that consumers

strongly associate with a brand,

positively evaluate and believe that

they could not find to the same

extent with a competitive brand

(Keller 2013).

Market Lane Coffee’s Point of

Difference is the ethical coffee beans

and the simple effective branding

elements, which are consistent in the

layout and orientation of the store.

Although the store is small, it

provides brand versatility and

uniformity with the takeaway cups

and display cards. Market Lane

Coffee provides consumers with the

opportunity to learn how to brew and

roast their own coffee and sell the

equipment and beans to enable

consumers to make it at home.

Market Lane Coffee also home

delivers the coffee beans through a

coffee club, which members sign up

Manchester Press’s Points of

Difference include the variety of

options that are offered all year

round which include: milk


bagels and aesthetically pleasing

food and coffee.

Little Wish Cafe’s Points of Difference

are that they provide customers with

a number of milk alternatives, coffee

bean choices, healthy desserts and

meals. The cafe also offers specials

for combining coffee with choices on

the menu to provide a competitive

advantage. Only the best coffee

beans (code black) are used to ensure

quality.

Dukes Coffee Points of Difference are

that they offer a variety of milk

alternatives and natural sweeteners

and roast their own coffee beans on

site. Merchandise, brewing

equipment and subscriptions are

offered for consumers who prefer to

brew their own coffee.

28

for and have the coffee delivered to

their door.

• Desirability &

deliverability

Lee, Bonn & Cho (2015) identify that,

from the consumer’s perspective, it

has become increasingly important to

support companies that encourage

and adhere to ethical practices and

guidelines. Many consumers view

ethical coffee beans as very desirable

and even necessary. The branding

elements for consumers are essential

to conveying the brand itself; Market

Lane Coffee achieve this through

creating uniformity and simple

branding to attract the consumers’

attention and make them feel

welcomed and at home, not

overwhelmed. As there has been a

substantial increase in the number of

coffee consumers, many wish to in

turn create the same flavour at home

and be involved with the process.

Market Lane Coffee provides

consumers with the opportunity to

engage with and learn more about

brewing and roasting.

Manchester Press’s Points of

Difference are quite desirable, as

many consumers are lactose

intolerant or gluten intolerant.

Manchester Press provides

alternatives for consumers with

allergies.

Deliverability: Manchester Press buy

lactose-free and gluten-free products

to ensure that the feasibility of the

service is understood.

Little Wish Cafe’s Points of Difference

are very desirable to their consumers,

as many are health conscious and

Little Wish Cafe caters to this need by

offering healthy desserts, and

accommodating consumers with

gluten and lactose intolerances. Little

Wish Cafe also caters to consumers’

high quality tastes, only offering the

best coffee beans (code black) to

ensure quality.

Deliverability: Little Wish Cafe

ensures that their products are

healthy by providing low calorie and

healthy alternatives as well as

providing certified code black coffee

beans to ensure feasibility and

quality.

Many consumers now more than

ever consider ethical coffee beans

desirable and even necessary in order

for them to purchase coffee.

Deliverability: The ethical coffee

beans are outsourced from

international markets; however they

are roasted on site to ensure quality.

Consumers have the ability to roast

and brew their own coffee, making it

more relatable, believable and

provide a greater understanding.

29

Deliverability: The ethical coffee

beans are outsourced from

international markets; however they

are roasted on site to ensure quality.

Consumers have the ability to roast

and brew their own coffee, making it

more relatable, believable and

feasible.

4.0 Brand positioning 4.1 What is the brand’s competitive ‘frame of reference’? What does your

client's brand ‘do’ for the consumer that is different to the competitors?

In order to determine the competitive frame of reference for brand positioning, it is necessary

to determine the category membership (Smith 2012). Evidently the products that Market Lane

Coffee compete with other brands for is the coffee market and also the restaurant market

within the geographical area. As identified, Market Lane Coffee have chosen to compete in

different competitive frameworks and therefore different POPs and PODs. There are three

main ways to convey a brand’s category membership: communicating category benefits,

comparing exemplars and relying on the product descriptor.

Table 5: Methods to convey category membership for Market Lane Coffee

Methods to convey category

membership

Definition Application to Market Lane

Coffee

Communicating Category

Benefits

Communicating category

benefits involves identifying

to the consumer the

fundamental reason for using

a category that does not

imply superiority, and a

means to establish category

POPs. Performance and

imagery associations can

provide supporting evidence

(Keller, Sternthal & Tybout

2002).

Market Lane Coffee attains

membership in the coffee

category by claiming the

benefit of great taste, which

is supported through their

claims of possessing high-

quality ethical and seasonal

coffee beans (performance)

and uploading images

showing consumers

delighted with the taste and

connecting with people in

which the coffee beans are

outsourced from (imagery).

Exemplars Well-known, noteworthy

brands in a category can also

be used as exemplars to

specify a brand’s category

Market Lane Coffee does not

currently use exemplars to

associate themselves with

other noteworthy brands.

31

membership (Keller, Sternthal

& Tybout 2002).

Product descriptor The product descriptor

follows the brand name and

conveys the category origin

(Keller, Sternthal & Tybout

2002).

Market Lane Coffee

establishes their name as it is

located on Market Lane; this

provides consumers with the

category of origin.

4.2 What is the apparent brand positioning?

Brand positioning is the way a brand is perceived by consumers and is based primarily upon

important brand attributes, benefits and values (Keller cited in Claudiu-Cătălin 2014). As

identified by Claudi-Cătălin (2008), a brand positioning strategy involves establishing a specific

and distinct place for the brand in the customer's mind. In relation to Market Lane Coffee, the

key determinants that consumers base their purchase decisions of coffee on are the price and

the quality. The following perception map identifies an accurate depiction of where Market

Lane is positioned in relation to competitors within the market. As identified in Figure 2, Dukes

Coffee is the main competitor in regards to the high quality taste, relatively low price and the

fact that the coffee beans are ethically traded. Dukes Coffee has a cheaper purchase price for

the coffee. Market Lane Coffee should aim to expand their stores nationally and

internationally to gain competitive advantage. As depicted in the perceptual map, Market

Lane Coffee’s prices are considerably high in comparison to Dukes Coffee, that also offer

quality and ethical coffee beans. Through mapping Market Lane Coffee’s current positioning

in relation to competitors within the market, it becomes evident that there is an ideal location

or gap to position the brand and product in the target market (Festervand 2004). The ideal

location that Market Lane Coffee should move towards is depicted in Figure 3, which

highlights the necessity for Market Lane Coffee to reduce the price of coffee beans to meet

or overtake Dukes Coffee.

32

Figure 2: Market Lane Perception Map

Source: Created for the purpose of this report.

High Price

Low Price

High Quality (good taste)

Low quality (poor taste)

• Market Lane (Ethical Coffee Beans)

• Manchester Press

• Little Wish Cafe

• Dukes Coffee (Ethical Coffee Beans)

33

Figure 3: Perceptual Positioning Map Ideal Location

Source: Created for the purpose of this report.

High Price

Low price

High Quality (good taste)

Poor Quality (poor taste)

• Market Lane (Ethical Coffee Beans)

• Dukes Coffee (Ethical Coffee Beans)

• Manchester Press

• Little Wish Cafe

34

5.0 Brand resonance model

Figure 4: Brand Resonance Pyramid

Source: Spinks, W 2016, ‘Lecture 3’, MKG322 Brand Management, learning materials on Blackboard,

University Of The Sunshine Coast, 10 April 2016.

35

Figure 5: Sub dimensions of Brand Building Blocks

Source: Spinks, W 2016, ‘Lecture 3’, MKG322 Brand Management, learning materials on Blackboard,

University Of The Sunshine Coast, 10 April 2016.

5.1 Salience - To what extent has the organisation achieved both breadth

and depth of brand awareness?

Brand salience measures the awareness of the brand and the extent to which a brand stands

out from competitors and reaches top of mind awareness under various situations and

circumstances (Van der Lans, Pieters & Wedel 2008). In relation to Market Lane Coffee, the

brand depth of awareness is easily recognised and recalled, as the company is considered to

have one of the highest quality coffees in the city, is located in the CBD and is easily recalled

with the distinct brand name and take away packaging: ‘we love to make coffee for the city

that loves to drink it’ (Market Lane Coffee 2016). The breadth of brand awareness measures

the range of purchase and usage situations where the brand element comes to the consumer’s

mind, which is dependent upon the organisation of brand and product knowledge (Rubi,

Oubiña & Villaseñor 2013). The range of purchase and usage situations considered by the

36

consumer include the fact that for many people, coffee is high priority and an essential part

of their daily routine; many purchase a coffee to start of their day before work or meet

colleagues, families or friends.

5.2 Performance - How well does the brand appear to meet customers’

functional needs and how do customers view the performance of the brand

including service aspects?

Brand performance is a measurement tool for assessing how well the product or service meets

the consumer’s functional needs (Rajagopal 2008). To what extent does the brand satisfy

utilitarian, aesthetic and economic consumer needs and wants in the product or service

category? The five important types of attributes that distinguish how customers view the

brand’s performance and service aspects are: (1) Primary ingredients and supplementary

features; (2) Product Reliability, Durability and Serviceability; (3) Service Effectiveness,

Efficiency and Empathy; (4) Style and design; and (5) Price (Tsui-Hsu Tsai, Jing Lin, & Li 2014).

Table 6: Performance Profile defines each attribute in relation to Market Lane Coffee.

Table 6: Performance Profile

37

Performance Attribute Defined Application to Market Lane Coffee

Primary ingredients

and supplementary

features

Customers’ beliefs about the level

that the primary ingredients of the

product operate and the unique

features that complement the

primary ingredients (Keller 2013).

Primary Ingredients: Coffee is of high quality, provides consumer

with energy and has a high quality in taste.

Supplementary features: The coffee beans are ethically traded and

only what is in season at the time.

Product Reliability,

Durability and

Serviceability

Product reliability measures the

performance consistency over a

certain time frame from purchase to

purchase, durability is the economic

life of the product and serviceability

is the ease of repairing the product if

needed (Sebastianelli & Tamimi

2002).

Reliability: Market Lane Coffee generally provides consistency

with regard to the long periods of waiting time. However, as the

coffee beans are seasonal, this presents elements of inconsistency

with the consumer’s ability to purchase the same product every

time.

Durability: Product lasts until consumed.

Serviceability: Not applicable.

Service Effectiveness,

Efficiency and Empathy

The service effectiveness identifies

whether the brand fulfils customers’

service requirements (Keller 2013).

Service efficacy describes the

responsiveness of the service.

Service empathy refers to the how

competent, caring and trusting

service providers are and whether

they have the customer’s interests in

mind (Skinner & Spurgeon 2005).

Service effectiveness: Provides friendly and personable service

experience.

Service efficiency: There are long wait periods and the service is

not very responsive or fast.

Service Empathy: The service providers do care about the

consumer’s interest; however, there are issues associated with

long waiting periods and not enough staff.

Style and Design The style and design refers to the

functional elements of the product

that ultimately affect the

performance, which is related to the

sensory and aesthetic facets

(Underwood 1996).

Contemporary innovative and simple typography on the packaging

links with the service environments. The coffee itself is rich as all

the beans are roasted on site, attracting consumers through the

use of smell.

Price The pricing policy of the brand

creates brand associations with

regard to how expensive or

inexpensive the brand is (Keller

2013).

Market Lane Coffee is high in relation to competitors in the

market. For example, the average coffee price for Market Lane

Coffee is $5, whereas the competitors within the market are

around the $4-4.5 mark.

38

5.3 Imagery - How well does the brand appear to meet customers’

psychological and social needs and how do customers view the brand in

terms of intangible aspects?

Brand imagery is largely dependent on the extrinsic elements of the service or product and

includes methods and strategies that the brand employs in an attempt to meet customers’

social and psychological needs (Keller 1998). The intangible aspects of the brand are where

consumers make imagery associations from advertising, their own experiences and/or other

sources of information (Keller 2013). The four main intangibles that can be linked to a brand

are: User Profile; Purchase and Usage; Personality and Values; and History, Heritage and

Experience (Keller 2013). Table 7: Brand Imagery Profile identifies the brand imagery profile,

applying each element to Market Lane Coffee.

Table 7: Brand Imagery Profile

Elements Linking to

Brand Imagery

Definition Application to Market Lane Coffee

1. User Imagery User Imagery refers to the type of

organisation or person who uses

the brand. This is based on the

target market’s demographics and

psychographics (Parker &

Sutherland 2005).

Market Lane Coffee attracts both

males and females between the ages

of 19-70. Middle income, high income


2016). The coffee consumer’s






them up (not as tired). The size:

employees, commuters, residents and

tourists visiting the area.

2. Purchase and

Usage Imagery

Purchase and Usage refers to the

set conditions or instances where

the user could opt to buy the

brand through the

Market Lane Coffee can be purchase

at any of the three stores in

Melbourne: Therry Street, Carlton and

Queen Victoria Market (Market Lane

39

implementation of successful

advertising (Keller 2013).

Our Shops 2016). The coffee beans

can be purchased online from

anywhere in the world. Consumers

who are part of the coffee club for

Market Lane Coffee also have the

opportunity to have coffee beans

delivered to their door.

3. Brand Personality

and Values

This element refers to whether

the brand itself has resonance

and similarities with the values

and personality traits of the target

market (Guiry & Vequist 2015).

Market Lane Coffee has humanistic

traits that are modern contemporary

and upper class for business

professionals.

4. Brand History,

Heritage and

Experience

This element refers to whether

the brand utilises their past or

heritage in certain elements of

the brand’s image (Keller 2013).

Market Lane Coffee relates the

packaging colours of the coffee beans

to where the beans are ethically

outsourced from.

5.4 Judgements - How is the brand viewed overall in terms of quality,

credibility, consideration and superiority?

Brand judgements emerge as a result of a consumer’s own personal opinions and evaluations,

which are based upon their own the imagery associations and different brand performance

(Yuwei et al. 2016). Chaudhuri and Holbrook (2001) identify that consumers can make many

different types of judgements; however there are four types of judgements that are most

important for creating strong brand associations. These four important judgements include

judgements about quality, credibility, consideration and superiority (Keller 2013). Table 8:

Brand Judgements further defines each element and applies this to how Market Lane Coffee

is viewed.

40

Table 8: Brand Judgements

Types of Brand Judgements Definition Application to Market Lane

Coffee

Brand Quality Brand quality refers to the

perceptions of the overall

quality, consumer satisfaction

and value (Dens & De

Pelsmacker 2016).

Market Lane Coffee brand

quality is indicated through

customer reviews on the

products and services. The

coffee beans are outsourced

ethically, providing consumers

with only the coffee that is in

season and beans roasted on

site.

Brand Credibility Brand credibility is the degree

to which consumers distinguish

the brand as credible based

upon the three dimensions:

perceived expertise,

trustworthiness and likeability

(Keller 2013).

Perceived experience: Market

Lane Coffee is still very much

developing; however is

competent, innovative and a

market leader in the ethical

outsourcing and consumer

interaction with the classes

they offer. Market Lane Coffee

is heading towards brand

expertise.

Trustworthiness: Market Lane

Coffee is, in a sense,

dependable; however, as the

coffee beans are seasonal, this

presents some trustworthiness

issues to consumers. Market

Lane Coffee must develop

brand trustworthiness for

consumers.

Likability: Market Lane Coffee is

a contemporary and innovative

coffee shop that is interesting

and worth spending time in.

They have established brand

41

likability through social media

and through the use of clever

branding elements, such as the

packaging.

Brand Consideration Brand consideration refers to

whether a consumer believes a

brand is important enough to

include it within their possible

options for purchase or use

(Keller 2013).

With high quality coffee that is

ethically outsourced, Market

Lane Coffee is centralised in

Melbourne CBD, making it

easily accessible for commuters

on their way to work.

Brand Superiority Brand superiority is the extent

to which consumers believe a

brand is superior and unique to

other brands (MacVeigh 2013).

Provides ethically sourced

coffee beans, which are very

desirable and even necessary.

The branding elements for

consumers means Market Lane

Coffee creates uniformity and

simple branding to attract

consumers’ attention and make

them feel welcomed and at

home, not overwhelmed.

Market Lane Coffee provides

consumers with the

opportunity to engage with and

learn more about brewing and

roasting.

5.5 Feelings - What are customers’ emotional responses and reactions?

What types of brand feelings are evoked by the brand?

Brand feelings are defined as a consumer’s emotional response and reaction to a certain

brand (Keller 2013). Tellis and Ambler (2007) identify the five types of brand building feelings:

warmth, excitement, security, social approval and self-respect. In relation to Market Lane

Coffee, consumers feel a sense of warmth to the brand as it originated in Melbourne City and

uses this as part of their marketing on the coffee cups: ‘we love to make coffee for the city

that loves to drink it’. Market Lane Coffee also evokes consumers’ emotions with a sense of

42

security, as the store presentation is welcoming and not over-cluttered, and it makes them

feel at home.

5.6 Resonance - What is the nature of the relationship customers have with

the brand? Consider loyalty, attachment, sense of community and

engagement?

Brand resonance depicts the relationship and level of identification that the customer has

with the brand (Keller 2013). Resonance is categorised in terms of intensity or the depth of

psychosocial bond that customers have with the brand, as well as the level of activity

engendered by this loyalty (repeat purchase rates and the extent to which customers seek out

brand information, events and other loyal customers). These two dimensions of intensity and

activity can be further broken down into four dimensions: behavioural loyalty, attitudinal

attachments, sense of community and active engagement. Table 9: Brand Resonance

Category identifies each category, providing a definition and the application to Market Lane

in particular.

Table 9: Brand Resonance Category

Brand resonance category Definition Application to Market Lane

Coffee

Behavioural Loyalty Behavioural loyalty is the

extent to which consumers are

repeat purchasers and the

volume or amount being

purchased (Keller 2013).

Market Lane is always busy as

it is in a centralised location

where many commuters and

professionals pass every day.

Customers would purchase a

coffee generally every working

day (5 days a week) or some

even every day, if they live

locally. The average amount of

coffee consumed by

Australians is 330 mls (one

large mug) per day (ABS 2016).

A loyal coffee consumer of

Market Lane Coffee based on a

43

consumer drinking 5 coffees a

week at $5 equals $25 a week

and $1,300 a year.

Attitudinal Attachment Attitudinal attachment refers

to the consumers viewing the

brand as something special and

forming an emotional

attachment to the brand (Keller

2013).

Many consumers have an

emotional attachment to

Market Lane Coffee, describing

the coffee shop as their little

pleasure or thing that they

look forward to.

Sense of Community Brands can convey a sense of

community, where the brand’s

community may reflect an

important social phenomenon

in which consumers feel

affiliation with others involved

(McAlexander, Schouten &

Koenig 2002). Having a

community of loyal followers

can create favourable brand

attitudes and intentions

(McAlexander, Schouten &

Koenig 2002).

Market Lane has a sense of

community with followers,

which is established through:

encouraging consumers to

post images on Instagram; the

coffee club where members

can sign up for exclusive

products; opportunities for

consumers to be involved and

understand where their coffee

beans are sourced from, how

they are roasted and brewed,

and the value of their high

quality ethical coffee.

Active Engagement Active engagement occurs

when consumers are engaged

and/or willing to invest time,

money and resources into the

brand, going beyond that

expended during the purchase

of the brand (Vivek, Beatty &

Morgan 2012).

Market Lane Coffee consumers

are very much involved in

active engagement and

interaction outside of purchase

through their use of time and

resources, updating and

posting photos on Instagram.

Consumers are able to follow

Market Lane Coffee on

Instagram to keep up-to-date

with the latest product

promotions and behind the

scenes outsourcing of coffee

beans. Consumers also have

the ability to join the exclusive

44

club to roast and brew beans

at home, purchase equipment

and be involved with

expressing their engagement

and loyalty to the brand.

6.0 Conclusion

As identified throughout this report, Market Lane Coffee has reached certain elements with

the brand development stage of the CBBE pyramid with both potential and current

consumers. Market Lane Coffee has achieved a high level of brand awareness, as it is easily

recognised and recalled by consumers within the Melbourne CBD (Rubio, Oubiña, J &

Villaseñor 2013). However, greater brand awareness could be achieved through expanding

the company nationally. In regards to Market Lane Coffee’s brand judgements, the quality of

the coffee beans is considered very high, only providing consumers with seasonal, ethically

outsourced coffee beans that are roasted and brewed on site; this is a great strength of the

organisation (Market Lane Coffee our-story 2016). The brand positioning identifies Market

Lane Coffee as being fairly expensive in relation to their main competitor Dukes Coffee, which

also offers ethically traded coffee beans. Market Lane Coffee should endeavour to reduce the

price of their coffee to gain competitive advantage. The credibility of Market Lane Coffee is

still very much in the developing phase; however, through their innovative designs and market

leadership in the ethical outsourcing and consumer interaction with the classes they offer, the

company has great potential to move towards market expertise. The superiority of Market

Lane Coffee is another key strength of the company, and creating uniformity and simple

branding attracts consumers’ attention (MacVeigh 2013). Market Lane Coffee should

endeavor to implement and include traditional forms of media to support their current social

media interaction and provide consumers with greater awareness. Market Lane is a relatively

new company that has many strengths through their branding; however there are many areas

of weakness that could be adjusted to create opportunities in which the company could

improve their overall branding strategies.

45

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Appendices

Appendix A

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Appendix B

Appendix C

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Appendix D

Middle-income quintile

The largest contribution to industry revenue comes from the middle-income

quintile. This proportion is a result of the mixture of high expenditure on more

expensive cafe meals and beverages, and high levels of on-the-go coffee

consumption from independent brewers. Total spending by this market has

increased over the past five years, but it has declined as a share of industry

revenue as the lower income quintiles have grown at a faster rate.

Fourth income quintile

The fourth income quintile is expected to contribute the second-largest share

of industry revenue. Coffee is entrenched in the daily life of consumers in this

market. While this market typically has high expenditure on food as well as

coffee, these consumers often substitute industry services for those of

restaurants. This trend limits this market's contribution to the industry. The

popularity of coffee has led many restaurants to introduce cafe-style operations

during the breakfast period, encouraging consumers away from cafes and

coffee shops. This has resulted in lower industry-based consumption relative to

income levels over the past five years. As a result, this segment's share of

industry revenue has decreased modestly over the past five years.

Highest income quintile

The highest income quintile is expected to contribute a lower share of revenue

due to this market's tendency to spend more time and money at higher end

restaurant and dining establishments. Fine coffees brewed by specialty coffee

houses and cafes are becoming increasingly popular with this market. However,

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with many restaurants introducing similar products, this market has declined as

a share of industry revenue over the past five years.

Appendix E

Appendix F

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Appendix G

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