Lifestyle -this is an important consideration while selling coffee.

by chee Leng (on coffee makers)
(Singapore)

What I am about to share would probably drew criticism from many coffee shop owners, and many might not agree with this article.

But, I think whether a coffee is good or bad, depends largely on the lifestyle of that individual consuming the coffee.

I am going to support my case with 2 scenario:

1. Despite Starbucks grow (for now, let's take Starbucks as a gourmet coffee chain) and plenty of independent coffee shops opening, Nescafe is still the number one coffee seller in the world.

Nescafe sells instant coffee.

If this is the case, can we say that regardless of how people are flocking to gourmet coffee shop, they still do not mind consuming instant coffee, in fact, they are consuming more than gourmet coffee.

2. Australia is well known as a coffee drinking country and recently it is reported that the Iced Coffee sales is very robust.

The Iced coffee grew by more than 11% when other carbonated drinks such as Coca-Cola have decline by 0.3%.

In fact, brands such as Dare (an Iced coffee brand in Australia), grew by more than 48% last year. And Illy the ice coffee brand is entering Australia to try and capture some market share as well.

Ice Coffee belongs to the RTD family, or ready to drink. Here, we noticed that coffee is a growing market, and iced coffee is growing fast.

To add on, note that gourmet coffee cost much more than instant coffee or RTD iced coffee but yet in terms of overall sales, instant coffee is still way ahead of them.

My $0.02

Say what you like, the consumption pattern of the coffee drinkers tells the real story -instant coffee considered to be inferior coffee, are not suffering any adverse effect.

In fact, if you remembered, Starbucks just entered into the instant coffee market 2 years ago and was doing not too badly (although Starbucks insisted that theirs is not instant coffee).

If instant coffee taste is not on par with freshly brewed coffee, what it is that get people to keep buying them?

The ease of use. Of course, the pricing, the discount helps. But, I believe ease of use is the main driver.

Imagine, which is easier -opening a sachet of instant coffee, or brewing a cup of coffee using a coffee maker?

In the same manner, iced coffee, which you can drink by just opening the can, is equally popular.

And for a chain that have thousands of outlets to switch direction to produce instant coffee (the products that they compete with for years), would tell you plenty about consumers' pattern right?

In the end it is lifestyle. If you can fit the lifestyle of your target group, you would have their dollars.

I am not saying that we should all set up a manufacturing plant to start producing instant coffee.

I am saying that in your promotion, instead of just using price or bundle, try thinking of how your outlet can better fit into the lifestyle of your targeted group.

It could be something as simple as free delivery to their homes or offices.

What do you think? Are you catering to the lifestyle of your customers?