January 25, IStock When Starbucks marketing director Howard Schultz visited Milan, Italy in and realized the city was home to more than coffee bars, a cartoon light bulb appeared over his head. Four years later, the ambitious Schultz acquired Starbucks—which had previously only sold ground coffee in bags, with no single servings—and proceeded to turn it from a six-store Seattle operation into a global phenomenon. Unlock the secrets of your home away from home with these 14 frothy facts. Nothing can interfere with the smell of their freshly-ground coffee.
Greggs marketing boss on transforming to a leading 'food-on-the-go' brand By Jennifer Faull August But with consumer concern at an all-time high when it comes to high fat and sugar products, it was inevitable that the sausage roll king would have to bring more healthy options into the mix.
And it seems to be working. The 'Balanced Choices' range now counts for in excess of 10 per cent of sales. The Drum caught up with Graeme Nash, head of customer and marketing at Greggs, to find out more.
The perception of the Greggs brand seems to have changed a lot in the past few years as you've added more healthy options to the menu and are now looking at products such as sushi.
Why has that been important to Greggs and where it sees its future on the high street? In recent years we made the decision to refocus our strategy to transform the business from a traditional bakery to a modern, attractive food-on-the-go retailer bringing about significant changes to the quality and relevance of our product offering.
We know that our customers love the freshly baked taste of a sausage roll, just as they enjoy an occasional doughnut. Food-on-the-go is a growing and competitive market. We know that to continue to grow the brand we need to attract new customers whilst encouraging our existing customers to shop with us more frequently, and to spend more when they do.
As a result, our product range is continually evolving to provide more choice, including our Balanced Choice range which offers sandwiches, salads, soups, yoghurt, porridge, fruit pots and drinks — all of which are under calories and meet green or amber on the Food Standards Agency traffic light system for fat, saturated fat, salt and sugar.
Sales of our Balanced Choice range are growing strongly and now account for more than 10 per cent of our total sales, signifying more of our customers are recognising the quality, range and value we offer in these healthier food choices. Our aim is to have more than 2, shops and we are investing in new shop openings as well as refurbishing our existing estate.
What role has marketing played in supporting this?
Throughout all of our campaigns we use insight and listen to our customers on a daily basis. Understanding who our customer is, the audience we are trying to target and what motivates their purchasing decisions underpins everything that we do and helps us to form our targeting strategies.
Health is a huge driver for us moving forward and as part of this our marketing activity has a continual role to play, both in building awareness around Balanced Choice and bringing customers through the door that may not usually consider Greggs as a healthier food-on-the-go destination.
Whilst we continue to invest in above-the-line channels to reach wider audiences when they are on-the-go, we also recognise the value of continually engaging our target audiences through our earned and owned channels including PR, digital, social and through our in shop communications.
Our campaigns throughout the year make sure that there is an integration and synergy across all of our marketing touchpoints. What works well is when we introduce an element of surprise and delight and do something the public may not expect from Greggs — a great example of this was our Nappuccino event in London earlier this year.
We have significant followings on social media which is where our fan base is and as such this is a rich source of information to help form some of our product decisions going forward. Can you share internal metrics on brand health and perception and how they've changed over time?
We measure and track perceptions and brand awareness through our internal brand tracker and via external agencies. Spontaneous brand awareness is growing with a high recall on freshness, quality and health whilst maintaining our value proposition.
Customer satisfaction is also increasing which is something that we monitor very closely.Specific regions, where consumers are habituated to hot or freshly ground coffee, take a considerable time and reluctance in adapting to the new tastes.
Extensive marketing and use of locally sourced products are essential in countering this perception. Thanks to the Aroma Expert System that protects the freshly ground smell in the bag, every cup is a perfect coffee experience! The inviting aroma of freshly ground coffee, the authentic Doncafé cup shape and our passionate red packaging have become the “good morning“ icon in our market.
KFC started serving freshly ground coffee in China last year, but people didn’t believe KFC was truly serious about coffee. For KFC’s 30th anniversary, Wieden+Kennedy Shanghai brought Colonel.
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Increasingly however, customers are now coming to us for food-on-the-go products, including breakfast and freshly ground coffee and these are things we are becoming much more recognised for.