the coffee wars abc nightline. strategic dimensions…actions price advertising products retail...

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 1

?St

rate

gic

Dim

ensi

on 2

Future Competitive Actions/Reactions

1. 2. 3.

1. 2. 3.

1. 2. 3.

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.

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)

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.”

Action Bulletin Board

Page 11

Wargaming Scoreboard

Time Period

Inde

x of

Rev

enue

Voice of the CustomerSa

les

Gro

wth

Strong

Moderate

Stay the Same

Slight Decline

Sharp Decline

Voice of the CustomerSa

les

Gro

wth

Strong

Moderate

Stay the Same

Slight Decline

Sharp Decline

Page 14

Wargaming Scoreboard

Time Period

Inde

x of

Rev

enue

Page 15

Wargaming Scoreboard

Time Period

Inde

x of

Rev

enue