Strategy and Creativity of Halo Coffee London

St locategy and creativeness of ring Coffee LondonSTUDENT NAME PHAMGIA HUY TRAN1.1 Threat of Substitutes steepCurrentAlthough deep brown market is a growing rapidly, tea continues to be the leader of the hot swallow products. There argon other beverages which argon used, function exposeed and supported by many people instead of umber berry tree such as fruit juices, water, soda, energy beverages etc.Consumers do non develop to pay any cost when they switch from umber to substitutes, which may ontogenesis the threat.FutureSince burnt umber noggin and hot chocolate bean atomic number 18 the barely products of pack, their fair game customer market is really unsexed. Nowadays people generate more(prenominal) choices of their beverage, peculiar(a)ly the hot one akin tea or milk, which are much healthier than coffee. In the research of the share of hot beverages consumed roughly often by individuals in the United Kingdom (UK) in 2015, enjoin has showed tha t 44 percent drink tea most often, followed by 21 percent who drink instant coffee (Statista, 2015).1.2 Intensity of Competitive tilt High CurrentThe attention has a monopolistic controversy and Nestl separate is imposing the largest market share especially by their two brands Nespresso and Nescaf. different competitors also befuddle a remark fit markets share.Consumers do not cave in to pay any cost for switching to other brands, which names high rate in rivalry.Because the industry is acquire with low growth rate, there is the sure retaliation from well companies against each others for brand equity, resources, important locations and price competition out-of-pocket to all of them looking for increasing their market share from constituted firms.FutureSince B2B is the maily place market of aureole, their market is too narrow and it is affirmable to lost their market share easily to others brands which are more usual. Nespresso and Nescaf concur been enormousning the market share to B2B market. According to Nestl Nespresso S.A (2016), Nespresso has formed partnerships with prestigious culinary organizations and chefs somewhat the world to interact and share viewpoints with key players in the industry such as Served by over 780 star-rated chefs or equivalent, served by 15 major airlines including Cathay Pacific Airways, Qatar Airways and Emirates Airlines, Swiss International Air Lines, Etihad Airways. glorification is now facing the threat of losing their byplay partners to bigger brands homogeneous Nespresso.1.3 encumbrance in tryingCurrentPurchasing coffee is not a straight forward process and often purchasing direct from a grower raise create problems further down the supply chain. This gouge be a serious problem because glorification cannot hold a stable coffee resource with high requirements from the local famers and growers.Future modality change- Less suited land for coffee Droughts in a commodious period of metre, step- upd temperatures and heavy rains are the main factors that even off draw seasons suddenly change without any reason and therefore not able to be predicted. It is estimated that the areas suitable for coffee cultivation will decrease advantageously by 2020 (CBI, 2016). The underlying drastic changes in the suitability of land for coffee production are having adverse erects (Coffee Barometer, 2014). This will effect highly and in a flash to the resources of glory from their suppliers.2.1 Assumptions and assumption reversalAssumptions about mob band sells all coffee and coffee beansHalo has 2 ranges of products available only online Halo touch sensation and Halo Speciality and target customers B2B, home-coffee drinkers.Halos suppliers are from in the south AmericaReverse each assumptionsHalo has other productsHalo coffee products are various and s experient in coffee shops or retailers, customers are diversifiedHalo supplies itselfHow to accomplish those reversalsHalo has oth er productsAccording to the place issues mentioned above, people now have a huge number of choices for their beverage. It is spacious for Halo to produce and develop other kind of drinks than coffee such as cheeselike drinks or energy drinks, especially tea due to the druthers of consumers. Nespresso and Nescaf are just two of different brands from Nestle beside others drink brands like Milo, Nestea and Nesquik. With this strategy, Halo can get benefits from the non-coffee drinkers, which is a very wide and profitable market. However, this is also a mature market with big brands dominating like Pepsi, Coca-cola, Monster, Red bull. If Halo decides to be a bran-new deviateer into a new market with different products than coffee, Halo need to start over again from the market research as well as marketing research. This is not recommendable for Halo to spend their resource into a mature market like soft drinks because Halo is still facing difficulties in remaining and increasing their own coffee market share.Halo coffee products are various and s older in coffee shops or retailersCurrently, Halo has served only their coffee with 2 ranges of products available only online Halo touching and Halo Speciality. This may creates a limit of choice for customers who want to enjoy a new taste or their personal one. Instead of providing only 2 ranges of products which are Halo Signature and Halo Speciality, Halo should create more different tastes of coffee, or especially let the customers use up and mingle the ingredients to create their own personal taste. This special dish up will crop Halo unique and will make full a number of customers who do not like the 2 old ranges of products in the past. To make this service achievable, Halo should open their coffee shops gyves or retailers because this will make Halo more accessible to everybody than the online business way. Customers will find it more convenient and interested to create and have a cup of coffee wit h their personal taste rather than the old online way. About the old online way, Halo should develop their website to make it more attractive and home-coffee drinkers can also choose and mix the ingredients to create and order coffee as well. This option is highly suggested because it not only understands the limit of target customers, but also makes Halo become famous for the special service. To follow this way, Halo ineluctably to guide out more research and test to produce new coffee products or new ingredients so that customers will have a mannequin of choices.Halo supplies itselfAlthough the bargaining power of the suppliers has been limited, Halo cannot tell the negative effect from climate changes on the crops as well as the resource. It is predictable that the areas suitable for coffee cultivation will decrease substantially by 2020 (CBI, 2016). In order to have a stable resources, Halo can supply itself by creating an area in the UK that have a same pin down to confe deration America to grow coffee beans. By modern font technology, it is possible to build a technical farm with modern equipments can make the same weather conditions and import the soil from South America. In addition, Halo can apply some technique skills in growing coffee beans to make sure that they can harvest coffee beans all around the years. This option prevents Halo from the risks of supplies from South America, which is too far and cannot be control well, provides a stable resource for Halo to sell 12 months a year. However, it will cost a lot of money to set up a modern farm like this and it will usually steer 4-5 years for a coffee tree to start producing coffee which is a long time. This option is not recommendable because it costs a lot of time and money and it is not suitable for a small company like Halo for now.2.2 SCAMPER Substituteo To compete with other beverage brands, Halo can develop more different types of products like tea, soft drinks, mineral water, which are all substitutes. However, these products are in mature markets so it will be hard for a new entrant like Halo to have market share. Halo can choose and egress coffee beans from suppliers in closer areas instead of South America to tailor the shipping cost, but the quality of coffee beans may be reduced as well because the soil and the weather in closer areas are not the best to grow coffee. It is possible to build a modern farm in the UK with the same climate and soil condition to South America to grow, harvest and supply for itself, but it will cost Halo a huge number of money and time to carry out this plan. Combineo Halo should run the business both online and offline as the same time. Opening coffee shops chains to introduce product directly will serve up Halo become more recognizable and increase image of the company. Doing just-in-time system service, especially online to reduce flow generation inside production system as well as response times from suppliers and to cu stomers. Making more ranges of coffee to give more choices to the customers, or providing them a special service that let customers create their personal coffee taste. This can increase Halos brand and the company will be more popular to everyone. It will take time and money to carry out researches for new coffee or ingredients. Adapto To reduce the threats from substitutes and rivalry, Halo needs to diversify their coffee products to attract more customers and key partnerships. This will help Halo to gain market share and compete with other competitors. When this burn nowadays is taking care of the environment, Halo should take advantage of their perishable capsules, which is one of their strength to increase the companys image. Modifyo Halo should develop the ranges of coffee products to be more accessible because customer will have more choices than the 2 old ranges. Halo should increase the use of the biodegradable capsules to gain comfortably impression from the society. Pu t to another useo Halo can benefit from the used coffee beans by change the coffee grounds to some organizations that take care about smasher to produce cosmetic or sell coffee grounds to farmers because it is good for the soil. This can save a lot of money for Halo as well as recycle the coffee grounds to protect the environment. root outo Halo is lack of target customers as well as diversification of product ranges, so they need to improve more things, not eliminate. Reverseo Currently, Halo has 2 ranges of products available only online Halo Signature and Halo Speciality and target customers B2B, home-coffee drinkers. This may creates a limit of choice for customers who want to enjoy a new taste or their personal one. Instead of providing only 2 ranges of products which are Halo Signature and Halo Speciality, Halo should create more different tastes of coffee, or especially let the customers choose and mix the ingredients to create their own personal taste. This special servic e will make Halo unique and will satisfy a number of customers who do not like the 2 old ranges of products in the past. To make this service possible, Halo should open their coffee shops chains or retailers because this will make Halo more accessible to everybody than the online business way. Customers will find it more convenient and interested to create and have a cup of coffee with their personal taste rather than the old online way.In conclusion, the most realistic and effective strategy for Halo to solve their issues and get more market share is to provide more choices of coffee products and provide coffee shops and retailers with special service.What is the company selling?Coffee and coffee beanWhat is the benefit of using it?Coffee with your personal tasteWho is the target customer for this product or service?People who want to have a best cup of coffee with their own favorite tasteREFERENCEStatista. (2015) Hot beverage consumption by type in the United Kingdom (UK) 2015http s//www.statista.com/statistics/466550/hot-beverage-consumption-by-type-in-the-united-kingdom-uk/Nestl Nespresso S.A., Corporate Communications. (May 2016) Nespresso business to businesshttps//www.nestle-nespresso.com/asset-library/documents/nespresso%20-%20b2b%20backgrounder.pdfNestle. (2016)http//www.nestle.com/brands/drinksEqual exchange. (2016) From bean to cuphttp//equalexchange.coop/products/coffee/stepsCBI- Ministry Of Foreign Affairs. (2016). Which trends offer opportunities on the European coffee market?Retrieved fromhttps//www.cbi.eu/market-information/coffee/trends/CBI- Ministry Of Foreign Affairs. (2016). How to do business with European coffee buyersRetrieved fromhttps//www.cbi.eu/market-information/coffee/doing-business/