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Just Caffeinated
Strategy & Marketing
Just Caffeinated
2023
Introduction
The coffee industry in India has long been dominated by traditional players such as Nestlé, Hindustan Unilever, and Tata Coffee. However, in recent years, the rise of new-age companies has shaken up the market, bringing innovation, new flavors, and health benefits to coffee lovers. In this case study, we will explore how these new companies are disrupting the industry and their impact on the market.
Market Overview
The Indian coffee market is currently valued at $1.46 billion and is expected to reach $2.03 billion by 2025. Traditional players like Nestlé and Hindustan Unilever dominate the market with their instant coffee powders, but new-age companies have entered the space, providing a unique and gourmet experience to consumers with new flavors and aromas, often topped with health benefits.
Key Factors Driving Consumer Behavior
Flavor and aroma are the most critical factors that attract online shoppers when purchasing coffee. Many direct-to-consumer (D2C) coffee brands offer a vast range of flavors, including French vanilla, hazelnut, caramel, dark roast, cinnamon, dark chocolate, and even sparky orange, among others. Companies are also experimenting with several methods such as lactic acid bacteria fermentation for more efficient coffee processing, honey sun-drying, oak-wood and orange pulp fermentation, beer-barrel aging, and more.
Competitive Landscape
While few traditional players operate in the D2C space, new-age companies enjoy a competitive edge, thanks to their early-mover advantage. Industry veterans have started entering the D2C segment given its potential, but new companies still dominate this space.
Outcome Decision
The coffee that we sold was Davidoff, a premium coffee brand known for its high-quality beans and exquisite taste. This choice of coffee brand added significance to the case study as it allowed us to stand out in the market and cater to the growing demand for gourmet and specialty coffee. The innovative techniques used in processing the Davidoff coffee beans provided customers with a unique coffee experience that not only tasted great but also offered several health benefits. To gain visibility, they invested in a holiday sale campaign that generated 3,54,444 impressions, with a click-through rate (CTR) of 2.6% and a return on ad spend (ROAS) of 2.
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