MKTG 716 Assignment 1 Example on no name coffee at no frills

the ppt is about no name coffee at no frills

1. Assignment
no name Coffee
Phase One
Marketing Plan
contains information by
by Elizabeth Williams
301030273
MKTG 716-000
June 4, 2022

2. About no name coffee
•Products are part of the No Name family of products
produced and sold by Loblaws
•The No Name brand was created in 1974 as Canada’s
first generic supermarket brand
•No Name products are value-priced and sold through
2,500+ locations across Canada
•All No Name products are easily identified by their bright
yellow packaging with minimalist design
•Loblaws operates various supermarkets, including
Loblaw, Great Canadian Superstore, No Frills, and Zehrs
•No Name products are also available online and at
Shoppers Drug Mart
•Loblaws employs over 100,000 people across Canada
No Name Coffee products:
•Flavours: Medium or dark roast; medium also available in
decaffeinated
•Formats: Ground, instant, pods
•Related portfolio products: Paper coffee filters, whitener
powders, stir sticks, foam cups
•Other Loblaws coffee products: President’s Choice; national
brands
•Competitors: Tim Hortons, Great Value (Walmart), Kirkland
(Costco)
Loblaws (n.d.). Loblaws Website.

3. Value creation
Appeals to No Name
“Haulers”
Simple Check confers
quality
25% cheaper
than national
brands
Can earn
Optimum
points
“People who shop at No Frills feel
like they’re buying the products they
could get elsewhere but for cheaper
prices… We bundled up all the
pride of getting a great deal, gave it
a name.” Dallaire (2018)
Two roasts; multiple
formats (instant,
ground, single serve)
Bain & Co. (2016)

4. Micro & macro-environment
factors & trends
Competition:
•no name coffee competes for shelf space with our
President’s Choice brand, which offers more flavoursand
types of beans
•There is more aggressive competition from the value-priced
national brands, such as Maxwell House (21% market share)
and Folgers (18% market share), which have more
advertising support.
•No name is merchandised lower than McCafe, Tim Hortons,
and President’s Choice organic coffees, making it harder for
consumers to see and pick up
•We need to target value shoppers via advertising or the
mobile app to maintain awareness
Loblaws, 2023
Williams, 2024

5. Micro & macro-environment
factors & trends
•Coffee consumption in Canada has been steady at 2.7 cups/day
for many years (Statista, 2020)
•80% of all caffeinated beverages consumed in Canada are
coffee (Food Services & Hospitality, 2019)
•75% of all coffee is consumed at home (Canadian Grocer, 2020)
•72% of Canadians drink coffee daily, spending between $10 and
$19 per month (Canadian Grocer 2020, November).
•As Canada welcomes 5-million new residents in the next two
years (CBC News, 2023), we have an opportunity to build
relationships with them, particularly older adults, who consume
more coffee than younger people (Statista, 2023).
Statista, 2020

6. Micro & macro-environment
factors & trends
Canadian Grocer (2020)
Natural Forces:
•no name is the first national brand to offer compostable coffee pods (Loblaws, 2022)
•Our packaging is at least 80% paper from renewable, recyclable and sustainable
sources Loblaws, 2022)
•Single use pods account for 31% of coffee use, growing about 4% per year
(Canadian Grocer, 2020)
•The #1 reason consumers don’t buy single use pods is cost; #2 is environmental
impact (Canadian Grocer, 2020)
•This gives us a competitive advantage – but other brands (e.g. Maxwell House) are
beginning to offer compostable pods
Canadian Grocer (2020)

7. Micro & macro-environment
factors & trends
Culture:
•Coffee revenues are expected to grow through 2030 (Statista, 2022), but there is a
cultural shift to new types of coffee and teas
•Cold brew is the fastest growing category of coffee (Food Services & Hospitality, 2019)
•Specialty coffees (e.g. latte, non-dairy drinks) are most popular among Millennial
consumers (Food Services & Hospitality, 2019)
•New Canadians often come from cultures where more tea is consumed
•Tea accounts for 12.3% of caffeinated beverage consumption and many consumers
consider tea to be healthier than coffee (Food Services & Hospitality, 2019)
•Consumer education about the health benefits of coffee may help us differentiate and
encourage category switching

8. Competition
Brand
Price
Cost/kg
Place
Locations
Product
Formats
Product
Flavours/Roasts
Avg.
Custo
mer
Rating
Promotion Notes
no name $9.72
(Loblaw,
2023)
2,400 stores
(Loblaw, 2023)
Via Loblaws
online
Ground,
instant,
pods
Dark, medium
roast regular and
decaf
3.6/5
(ChickA
dvisor,
2023)
Weekly flyers, in-
store, In App
coupons, websites,
Compostable pods, all paper
ground packaging; instant in
plastic.
Kirkland
Signature
(Costco)
$16.00
(Costco
2023)
107 stores
(Costco, 2023)
Via Costco
online; Amazon
Ground,
pods
Dark, regular &
light roast regular
and decaf
2.4/5
(Costco,
2023)
In-store, in App,
Amazon, Google
ads
100% Colombian coffee.
Ground sold in tins; pods not
compostable; instant in
plastic
Great Value
(Walmart)
$10.77
(Walmart,
2023)
402 stores
(Walmart, 2023)
Via Walmart online
Ground,
instant,
pods
Dark, regular and
light roast regular
only
4.3/5
(Walmar
t, 2023)
In-store, in App,
weekly flyers,
websites, Amazon
Ground sold in tins,pods not
compostable
Tim
Horton’s
$23.60
(Loblaw,
2023)
6,300 stores
(Tim Hortons, 2023)
Via Amazon,
national
retailers
Ground,
pods,
instant
Dark, regular, light,
decaf, French
vanilla, Colombian,
4.7/5
(Amazon
.ca,
2023)
In restaurants, in
App, Google ads,
Amazon
Ground sold in tins; pods not
compostable. Offer variety
packs of flavourpods

9. SWOT
Strengths
•Trusted brand (no name)
•Lowest price
•Most grocery locations
•Environmentally friendly packaging
•Strong in-store real estate in Loblaw properties
•Optimum points
Weaknesses
•Perceived quality –poor ratings
•Limited roasts
•Not organic or fair trade
•Many private label players competing for 21% of
market (Statista, 2020)
•Younger consumers favourcold brew and
specialty coffees (Food Service & Hospitality,
2019)
Opportunities
•Improve flavour
•Add flavouredcoffees (e.g.vanilla)
•Certify organic and/or free trade beans
•Cold brew products or accessories
•Coffee accessories (e.g.travel mugs)
•Coffee consumption is rising
Threats
•Retail coffee competition (e.g.McDonalds, Tim
Hortons)
•Boutique/local roasters stealing market share
•Other brands shift to compostable pods removes
environmental advantage
•Delivery services such as Uber Eats may reduce
home brewing of coffee (Food Service &
Hospitality, 2019)
“I love this coffee so
much. It is so tasty
and it makes me feel
like I'm not adding to
the destruction of
the environment...
And they are crazy
inexpensive too!”
(ChickAdvisor, 2023)
“This coffee is definitely
a get-what-you-pay-for
type of beverage.”
(ChickAdvisor, 2023)

10. Strategy 1: Offer more and better flavours
•Specialty coffees are popular among Millennials (Food Service & Hospitality, 2019), who
make up <10% of market share (Statista, 2023)
•By offering more flavoursin our ground and pod formats, we can build share among value
shoppers, including younger consumers, and pull market share from pricier brands, such
as Tim Hortons
•The most popular coffee flavoursin 2022 were caramel, mocha, vanilla,hazelnut,
cinnamon and pumpkin spice (Quench, 2022)
•We can position these new flavoursas both hot and iced beverages
•We must also invest in improving customer ratings of unflavouredcoffee to >4/5 to
compete with Walmart and Tim Horton’s

11. Strategy 2 –iced coffee
•Iced coffee is the fastest growing sub-category (Food Service &
Hospitality, 2019)
•In 2021, cold coffees accounted for 74% of Starbucks U.S. sales
(Yahoo Finance, 2021)
•With inflation rising and wages stagnant, consumers are increasingly
making iced coffee at home or buying it at the supermarket
•Supermarket prepared cold brew coffee is dominated by high end
brands such as Starbucks and President’s Choice
•By extending our format to prepared cold brew, we can capture the
value shopper share of this market
•We can also market a No Name cold coffee concentrate for consumers
who want to make their own cold brew at home
•Cross-promotion to the PC Cold Brew coffee maker can also drive
sales of our ground and whole bean formats as a low-cost way to make
cold brew at home
•Introduce the category with bonus Optimum points on first purchase
Loblaws (n.d.). Loblaws Website.

12. Strategy 3 –Target mature new Canadians
Statista, 2023
•Coffee drinkers over age 45 account for 70% of the market in Canada
(Statsta, 2023)
•Canada is targeting to admit about 500,000 new immigrants per year
between 2023 and 2025 (CBC, 2023)
•By targeting Generation X and older Millennials, we have an
opportunity to build a long-term relationship
•Many newcomers struggle to find employment and affordable housing
and are looking for low cost grocery staples
•Targeting non-English digital ads on search engines and social media
can help us reach newcomers with coupons and special offers
•In-store sampling is a low-risk way to introduce the coffees to No Frills
shoppers, particularly new Canadians
•Sponsoring cultural events is another way to reach immigrant
communities and encourage them to try no name coffee

13. My Crazy Idea
•Introduce our coffee to office workers by
parking a no name branded yellow coffee
truck outside Union Station in Toronto
•Offer free samples of hot and cold brewed
coffee
•Give away trial sizes of pods and cold
brew concentrate with QR coupons
•Focus on environmental benefits of pods
and packaging
•Offer a no name commuter mug free with
purchase of product
•Drive engagement with Instagram photo
contest –My no name Coffee Break
Measuring success
•Number of impressions
•Engagements with street team
•Samples given
•QR codes redeemed
•Direct purchases
•Contest entries
•Sentiment
Canadian Grocer (2020)
Shutterstock (n.d)

14. My Selfie

15. References
Bain & Company (2016). Explore the elements of value [webpage]
Canadian Grocer (2020, November). Category captains: Coffee. Canadian Grocer.
CBC News (2023). Will Canada be able to house all the immigrants it hopes to welcome by 2025?
ChickAdvisors(2023). No Name Coffee Reviews. https://www.chickadvisor.com/item/no-name-coffee-1/
Costco Wholesale Canada Limited (2023).Kirkland coffee [Web page].
Dallaire, J. (2018, May 16). No Frills finds pride in being a ‘hauler’. Strategy Online
Food Service & Hospitality (2019). The 2019 coffee and tea report.
Loblaw Companies Limited (n.d.). About [web page]. https://www.loblaw.ca/en/who-we-are
Loblaw Companies Limited (2022). Loblaw leading the way with sustainable packaging on PC and no name coffee products
Loblaw (2023). Great Canadian Superstore [web page].
Quench (2023). The most popular coffee flavoursin workplaces today
Shutterstock (n.d.). Yellow food truck [image]. https://www.shutterstock.com/search/yellow-food-truck
Statista (2020). Past month coffee brands used at home in Canada in 2020.
Statista (2020). Coffee drinkers: Cups per day Canada 2020.
Statista (2023). Coffee consumer market share 2021, by age.
Statistics Canada (2015). Beverage consumption of Canadian adults.
Walmart Caanda(n.d.). Our locations [web page].
Walmart Canada (2023). Great Value coffee [web page].
Williams, E. (2024). Coffee display at Zehrsstore. [image]
Yahoo Finance (2021). Starbucks’ cold beverages are massively outselling hot coffee