customer-centric innovation: columbia business school student project for fika
TRANSCRIPT
FIKA
FIKA doesn’t sell coffee, or chocolate, or pastries...
FIKA sells relaxing moments.
We wanted to introduce a product that embodies relaxing moments.
That would inspire customers to indulge in more relaxing moments.
Executive SummaryElevate FIKA’s award-winning chocolate truffles front and center with new products that customers associate with “relaxing moments”, starting with truffle-topped gelatos to:
● Increase sales● Drive customer acquisition● Elevate brand awareness● Utilize existing resources and processes while driving
innovation
Executive Summary
● Introduce Swedish gelato in store
● Execute marketing plan● Host events at FIKA
● Distribute single-serve Swedish gelato through wholesale partners
● Sell gelato to-go in store
● Introduce other truffle hero desserts
● Extend store hours and launch dessert bar
Launch of more NYC locations
Expansion to East Coast & increased productivity in stores
Wholesale expansion & greater brand awareness nationwide
Short-Term
Middle-Term
Long-Term
For Chocolate Lovers, who are looking for a relaxing moment of indulgence, the Truffle-Topped Gelato is a dessert that
marries Swedish Gelato with the world’s best chocolate truffle.
Positioning Statement
FIKA is excellently positioned to successfully enter this space...
What Does the Market Say?
Word Association Conjoint Analysis Concept Test
Surveyed 100 customers to find the top 5 food items that they associate with having a relaxing moment.
Online and In-store survey to extract customer preferences and price points for each of the 3 possible truffle-centric product lines
Online and In-store survey using visual imagery to understand the likelihood of purchase vs. the uniqueness of 3 new truffle-centric product lines
A three channel approach was taken to analyze consumer preferences.
Consumer and Word AssociationConsumers make mental associations between food and having a relaxing moment.
In the survey conducted, the top 5 food associations are:
1. Ice Cream2. Pizza3. Chocolate4. Cake5. Popcorn
The resulting word association network map shows that “Ice Cream” is the top food that has the strongest network association with other comfort foods.
Network Map
Concept Test Approach
Concept tests help assess if there is a customer interest in purchasing a new product line. The Team conducted online and in-store concept tests with 3 new product lines:
● Gelato with Truffle on Top● Mini Cake with Truffle on Top● Cheese Cake with Truffle on Top
Concept Test Results
Ice cream with truffle emerged as the clear winner with approximately 79% likelihood of purchase compared to the other two product concepts tested.
Even though ice cream scored low on the uniqueness score, with FIKA ambience and uniqueness of chocolate truffles, there is an opportunity to capture a larger market share by offering ice cream & truffle combinations.
We distributed our conjoint analysis via the Typeform platform, testing 16 product profiles. Survey can be found here. This was administered via email as well as via iPads to customers in store.
We received 57 qualified responses.
Conjoint Analysis Attributes Levels
Dessert Type
Gelato
Mini-Dessert Cake
Mini Cheesecake
Brand
Fika
Eataly
Starbucks
Le Pain Quotidien
Price
$7
$9
$13
Where consumed
Eat in store
Eat out of store
Go to Market Profile: Truffle topped Gelato from Fika, for $7, consumed in store
Brand awareness among consumers is still relatively low (only 20% awareness of our study set), as well as awareness of the awards won by the chocolates (<10%)
Other findings: ● Consumers much prefer to enjoy the truffle Gelato
in store● Consumers value the FIKA brand significantly more
than Starbucks or Le Pain, and essentially the same as Eataly
● Concept test confirms that Gelato should be the first product
● Respondents familiar with FIKA rated the products lower
Conjoint Analysis - Results
Intercept 5.29 P Value:
Familiar with FIKA? -0.45 0.00
Mini Cheesecake 0.16 0.25
Mini Cake 0.06 0.69
Eataly -0.02 0.90
Starbucks -1.56 0.00
Le Pain -0.47 0.00
$9 -0.24 0.09
$13 -1.024 0.00
On the Go -0.45 0.00
Personas
● Classically trained musician● Frequents coffee shops 3x
per week to clear his head● Knows about FIKA but is
not aware the chocolates are award-winning
● Swedish expat who moved for university & now works in advertising
● Comes to FIKA to feel like she’s back in Sweden
● Frequents coffee shops to escape for a few minutes away from work
● Busy, Upper West Side mom● Frequents coffee shops to
catch up with neighborhood friends
● Wants to serve her children the highest quality foods
● Values FIKA’s commitment to sourcing from local farmers
Samantha Joannes Mary
Perceptual Map/ Value Curve
Introducing…
FIKA Truffle-Topped Gelato
Features
Swedish Gelato with Chocolate Truffle
● Highest quality gelato crafted by artisan makers
● Hero the award-winning FIKA chocolate truffle
● Showcase creativity with unique FIKA flavor profiles
● Single-serve scoop to provide the optimal amount of indulgence
Pricing & Distribution
● $7 for one scoop of gelato topped with a truffle● Go-to market strategy is to sell exclusively through store
locations○ Pilot in select stores○ Discover best selling flavors for future wholesale
distribution
Big Gay Ice Cream$6.50
Blue Marble$5.75 Dbl scoop
Ample HIlls$4.35 Dbl scoop
Competitors in NYC
Eataly Gelato$4.90
L’Arte del Gelato$5.75
LAUNCH PLAN
How Do You FIKA?
Promote the Swedish concept of taking a coffee break and generate buzz for new product launch
#MyFikaMoment
Marketing Launch Strategy
Microsite
Social Media Engagement
Teaser Campaign
In-Store EventsGifting endorsement
program
Photoshoot & media coverage
Branded “My FIKA Moment” Packaging
How do you FIKA?
● Encourage users to upload their FIKA moments.
● FIKA to repost most interesting ones.
● Most popular to be invited for an exclusive feature
My FIKA Moment Microsite
Social Influencers Endorsement Program
FIKA is Swedish for taking a coffee
break. Join the movement to
encourage our fellow New Yorkers
to take a break. Show off your
FIKA moment and spread the love
:)
#MyFIKAMoment
Photoshoot & Media Coverage
Photoshoot with top media personalities showing their FIKA moments.
In-Store Events
● Host summer “ice cream socials” at select FIKA locations to acquire new customers, build community & strengthen brand affinity
● Invite influential food bloggers & media personnel for product launch event
Middle-Term Plan1. Chocolate is the hero
● Operational focus on Chocolate● Visual Merchandising focus● Chocolate lookbook
2. Introduce other product extensions● Mini cheesecake● Mini cakes
3. Launch Dessert Bar in select locations● Utilize excess capacity by remaining open after 7pm● Sell more coffee with desserts● Increase sales of chocolate
4. Continuously focus on driving Buzz through social media
● This is How I Fika● My Fika Moment!
Long-Term Plan
● Sell single-serve Swedish gelato with truffle embedded through wholesale partners
● Brand gelato containers with unique FIKA point-of-view and concept
● Increase nationwide brand awareness and continue generate excitement around the brand
Gelato Fiasco
$7.99 16 oz
Il laboratio del gelato
$9.99 20 oz
SoCo Creamery$5.99 16 oz Van Leeuwen
$9.99 16 oz
Talenti$4.99 16 oz Blue Marble
$6.99 14 oz
Competitors in Wholesale
Long-Term Plan
APPENDIX
Market Data
US Leading Ice Cream Brand Sales - 2014
● In any given two-week period 40% of all Americans will consume ice cream (47% consume coffee over same period)
● The average American consumes ice cream 28.5x per year ● In 2013 Americans spent ~ $14 billion on ice cream (not including
restaurant sales)
Company ValuesFika believes in the highest quality
without compromise. Fika is committed to sustaining quality, culture, and the environment in
the communities it serves.
Key ActivitiesFika serves chocolate, coffee,
pastries, and food. It also offers catering and chocolate
classes. Fika’s head pastry chef enters chocolate
competitions and travels around the world to
showcase Fika’s award-winning chocolate truffles.
Value PropositionsBy providing artisanal products, exceptional customer service, and premium locations, Fika has created an upscale yet comfortable destination for customers seeking an enjoyable and relaxed experience. Fika seamlessly blends Swedish tradition with the vibrancy of each local community to provide an experience unlike any other luxury cafe brand.
Customer RelationshipsMost customers are location based, they might not know FIKA but once
they try their products they are likely to return. Word of mouth and
celebrity endorsement have helped the awareness spread. Minimal paid advertising and promotion. Loyalty
program available.
Customers-FIKA creates value for those who are looking for a coffee break and a bite, either in store or to go. -FIKA customers appreciate good quality ingredients and are environmentally conscious.-The main customer segments are professionals, ranging from early 20s to 40. Subsegments include ‘upper west side mommies’, lunch dates/power lunch, elite coffee customers, ‘Whole Foods’ customers and tourists/passer bys.
Key Partners● Local farmers● Dean & Deluca● Whole Foods● Lolli & Pops● Gansevoort Hotel● Petrossian Boutique, ● Le Parker Meridien● David Yurman
Key Resources● Fika chocolate Chef● Fika Pastry chef● Locations
ChannelsFika has three main distribution channels:
(1) Retail(2) Wholesale(3) Ecommerce
Key CompetitorsOur customers currently meet their need at other coffee shops available nearby, location being the main driver factor. Potential competitors would be other coffee/sandwich chains in the same proximity to our customers’ target area, ie. Starbucks, LPQ for retail and prepackaged coffee/chocolate brands on wholesale shelves. FIKA’s competitors have established brand awareness, more locations.
Cost Structure● Raw materials● Storage and Transportation● Store space rental and operational expenses● Store employees● Customer acquisition expenses
Revenue Streams● Products sold in retail locations● Products sold via wholesale to Whole Foods & Dean & Deluca’s● Products sold online● Catering● Events held in store locations
Consulting Team
Bryan [email protected]
Jacqueline [email protected]
Danae [email protected]
Aparna [email protected]
David [email protected]
Mohammad El [email protected]
Q&A