1. Account for the “Hot Drinks” (Café & Hot Chocolate) industry” in the UK. Further, emphasize central factors seen from a consumer’s point of view. The answer to task 1 must have a maximum of 2400 keystrokes (ex. illustrations/models etc.)
2. Companies in the Café industry are affected by various factors in the external environment. Analyse two or more selected key factors in the external (Micro/Macro) environment affecting “SAID dal 1923” (SAID). Include the competitive situation within the UK market as one of them.
3. Analyse the use of one key parameter in the Marketing Mix at SAID. The answer to task 3 must have a maximum of 2400 keystrokes.
4. Briefly discuss the following 4 statements: “On-the-go consumption is set to show strong growth in the UK Hot Drinks market”. “Consumer demand is driven by premiumisation in hot drinks”. “Sound background knowledge and the ability to discuss a coffee’s origins is something that people are demanding more and more”. “New players in the UK Hot Drinks industry are met with high entry barriers”.
5. Identify possible challenges for SAID. Further, discuss and recommend possible future solutions for SAID which could strengthen SAID’s niche position in the UK market.
“On-the-go consumption is set to show strong growth in the UK Hot Drinks market”
This means the UK hot drinks on-the-go market is set to experience high growth in the coming years form the new generation of hot beverage drinkers. This will result in innovation in the market creating new products for the market and will most likely also result in more stores being opened by the different brands.
It is also predicted that there will be an increase in the number of vending machines.
“Consumer demand is driven by premiumisation in hot drinks”
The current trend among consumers is moving towards premium hot drinks. This is seen by companies such as Nestle announcing new ranges to fill this demand. Consumers are demanding high quality and healthier products; this is part of the premiumisation movement in the hot drinks industry at the moment.
Consumers will have to pay more, providing a greater profit margin for the companies involved in creating and selling these products. Consumers are also looking for products, where they are able to recreate the coffee shop experience/culture at home, and they are able to emotionally connect with the brand.
This is all part of the premiumisation trend, consumers are demanding more from the companies.
“Sound background knowledge and the ability to discuss a coffee’s origins is something that people are demanding more and more”
Consumers are not only paying for the product, but also the experience, and they want to learn more about the product through this experience provided by the coffee houses.
When buying a coffee, consumer are demanding to know where the coffee beans are from, how they were grown, how they journeyed from the coffee house, the roasting process and what goes into making the coffee.
Coffee drinking is moving from drinking a simple cup of coffee to an experience. Consumers are expecting more from the coffee house than just a coffee, they want a story which they can emotionally connect with, knowledge is key in this new era of hot drinks in the UK. And global issues such as sustainability and fair trade form part of this narrative.