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