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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
3
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).
5
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
6
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.
7
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.
8
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).
9
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.
10
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
11
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.
12
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.
14
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
15
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.
16
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).
46% of the population consume
coffee (ABS 2016).
46% of the population consume
coffee (ABS 2016).
Size of target market Employees, commuters, residents
and tourists visiting the area.
Employees, commuters, residents
and tourists visiting the area.
Employees, commuters, residents
and tourists visiting the area.
Employees, commuters, residents
and tourists visiting the area.
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.
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.
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.
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.
18
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.
Melbourne CBD, close to office
buildings, shopping precincts, Queen
Victoria Markets, exhibitions centre,
crown entertainment complex,
Etihad stadium and other popular
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.
Melbourne CBD, close to office
buildings, shopping precincts, Queen
Victoria Markets, exhibitions centre,
crown entertainment complex,
Etihad stadium and other popular
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).
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).
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).
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).
19
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.
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.
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.
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.
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.
The core need consists of the benefits
that the product provides to the
consumer to make it valuable
(Solomon et al. 2014). For
Manchester Press, 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.
The core need consists of the benefits
that the product provides to the
consumer to make it valuable
(Solomon et al. 2014). For Little Wish
Café, 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.
The core need consists of the benefits
that the product provides to the
consumer to make it valuable
(Solomon et al. 2014). For Dukes
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.
- 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
The actual product is the physical
good or the service that provides the
consumer with the desired benefit
(Solomon et al. 2014). The actual
product that Manchester Press offers
The actual product is the physical
good or the service that provides the
consumer with the desired benefit
(Solomon et al. 2014). Little Wish
Cafe’s actual product is the coffee
The actual product is the physical
good or the service that provides the
consumer with the desired benefit
(Solomon et al. 2014). The actual
product that Dukes Coffee offers to
20
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
The augmented product is the actual
product including any additional
features to ensure that the company
has a competitive advantage
(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.
The augmented product is the actual
product including any additional
features to ensure that the company
has a competitive advantage
(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
The augmented product is the actual
product including any additional
features to ensure that the company
has a competitive advantage
(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
21
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.
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.
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.
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.
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.
22
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
• 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
• 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
• 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
People/ employees
Waiter/waitress, chefs, barristers,
customer service, instructors for the
roasting and brewing lessons,
delivery driver.
Waiter/waitress, chefs, barristers,
customer service.
Waiter/waitress, chefs, barristers,
customer service.
Waiter/waitress, chefs, barristers,
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
23
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.
Physical evidence: the physical
environment where the exchange
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.
Physical evidence: the physical
environment where the exchange
takes place. For Little Wish Cafe this
is the coffee shop, which provides
unique decor and an excellent
atmosphere.
Tangibles: The tangible product for
Little Wish Cafe is the coffee, which
the consumer receives.
Physical evidence: the physical
environment where the exchange
takes place. For Dukes Coffee this is
the coffee shop, which provides
unique decor and an excellent
atmosphere.
Tangibles: The tangible product for
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
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
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).
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.
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.
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.
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.
25
Many avid coffee consumers fulfill
their social needs of belongingness
through drinking coffee and
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.
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
cognitive stimulation.
The experiential benefits that are
associated with the consumption of
coffee including the consumer being
26
provided with a coffee that is of high
quality and calibre, while meeting
their sensory requirements and
cognitive stimulation.
• 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
alternatives, coffee bean choices,
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
alternatives, coffee bean choices,
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
and fourth income earners (IBIS
2016). 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). 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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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,
51
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