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The Coffee Wars

The Coffee Wars. ABC Nightline. Strategic Dimensions…Actions. Price Advertising Products Retail stores Operations, roasting, packaging Coffee culture Social issues Others??. Ads. Coffee’s Blue Ocean?. ?. Strategic Dimension 2. Strategic Dimension 1.

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The Coffee Wars

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  1. The Coffee Wars ABC Nightline

  2. Strategic Dimensions…Actions • Price • Advertising • Products • Retail stores • Operations, roasting, packaging • Coffee culture • Social issues • Others??

  3. Ads

  4. Coffee’s Blue Ocean? ? Strategic Dimension 2 Strategic Dimension 1

  5. Future Competitive Actions/Reactions

  6. Wargaming Roles • Interactive dynamic competitive simulation • Key Players…Team Roles • Starbuck’s, Dunkin’ Donuts, McDonald’s, Coffee Equipment Manufacturers, Coffee Farmers, Folger’s, Customers • Others companies • Other coffee companies, other food companies, retailers, suppliers, coffee growers/farms, processors, transporters, etc. • Regulators/Watchdogs • FDA, USDA, DoJ, State Dept, WTO, Fair Trade, Organic, etc.

  7. Wargaming Process • Know your team • Know other teams, too… • Develop repertoire of actions • Anything goes, but must get OK from referee • Let the fight begin… • Dunkin’ Donuts gets first moves • Other teams respond…or not • Other teams carry out actions…or not • Actions must be publicly announced (verbal and PPoint screen) • Scorekeeper • Update revenue “score” based on… • Customer reactions to actions • Customer’s general impressions, commentary • Investors’ perceptions of actions (Wally)

  8. Action Sequence • Actions, signals, threats, thoughts, etc…. • Type in VERY brief statement of your action, announcement • Ring bell, then give verbal statement (30 seconds MAX) • Examples: • DD: Introduces of mini cheeseburgers on menu…Double-D Sliders • Seattle’s Best: Launches print ad campaign in national women’s magazines • Customer thoughts: • At any time…ring bell and give verbal statement (30 sec. MAX) • Example… “It would be nice that I can get a decent cup of coffee at the fast food places my kids like to go eat, like Pizza Hut or KFC.”

  9. Action Bulletin Board

  10. Wargaming Scoreboard Index of Revenue Time Period

  11. Voice of the Customer Strong Moderate Stay the Same Slight Decline Sharp Decline Sales Growth

  12. Voice of the Customer Strong Moderate Stay the Same Slight Decline Sharp Decline  Sales Growth

  13. Wargaming Scoreboard Index of Revenue Time Period

  14. Wargaming Scoreboard Index of Revenue Time Period

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