The Local Lion Coffee Shop Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Local Lion Coffee Shop Case Solution

Intensity of competition

The competition in the market in intense and robust due to the presence of leading and valuable coffee producers. Local Lion faces immense competition from Hatchet Coffee, Espresso Coffee and Starbucks because of the similar product offerings at competitive prices. To lead the market, the company needs to extensively work on effective marketing and promotion strategy to attract the wider base of customers (Porter, 2015).

Ways to improve brand equity

In the midst of the intense competition, the company could improve the brand equity through various ways such as;

Building brand awareness among customers and improve its visibility. Apart from advertising campaigns, the company could take the email marketing that has become indispensable when it comes to improve the brand awareness.
Secondly, the company needs to improve the brand recognition by letting its customer knowing about its products and offerings. This could be done by creating a unique and narrative brand story that would communicate the company’s message.
The company must address the needs and preferences of the customers because successful brands adapt to evolving trends and changing market conditions on consistent basis.
The company could increase the brand exposure by engaging with its audience and publishing valuable content on social media.
The company must communicate why the brand is different from the market rivals and focus on building the emotional connection with the target audience.

Differentiation Strategy

Starbucks has recently entered the market but from number it has gained greater profitability. Starbucks use product different strategy in order to take the market share from other players in the market. It has a strong brand position in the minds of the customers. The differentiation point of Starbucks include uniqueness and high quality coffee offered at premium prices relative to other industry players (Thompson, 2020). Local lion coffee directly sources coffee from farmers, which is organic and fresh and the mountain coffee adds another differentiation point for the company. The company can use the organic and mountain coffee and create a value proposition which differentiate the products from others. The Local Lion Coffee enjoys an advantage of locality. People from domestic market prefer local brands and if the company charges premium prices by delivering a high quality coffee with local and unique flavor, it would be able to make a difference.

Local Lion Positioning Strategy

As knows that the local lion coffee shop has facing so many competitors in its surroundings such as the Hatchet Coffee and the Espresso Coffee while the one of the famous coffee makers is also opening its shop in the near place of Local Lion Coffee Shop which is the bigger threat for it. The Josiah Davis, the owner of the Local Lion Coffee Shop, needs to establish its brand positioning in order to differentiate its coffee brands with its competitors. As knows that the Starbucks Coffee and other competitors such as the Hatchet Coffee and the Espresso Coffee has the high prices and high-quality coffee that is why the prices of these coffee brands are higher than the prices of Local Lion coffee. So, it is suitable for the Josiah Davis to differentiate itself on the basis of the cost and follow the cost differentiation strategy to position itself in the mind of its customers and competitors.

The cost differentiation competitive strategy has the several advantages related to the significant market share and the capacity utilization (Consilue, 2018). The increase in market share and capacity utilization are due to the

Higher productivity in the coffee shop
Higher capacity utilization due to the lower prices as compare to the surrounded competitors
Implementation of Lean production method such as the Just in time (JIT)
Effective production process which reduces the cost of making coffee for the Local Lion Coffee shop
Effective distribution channel to deliver the online coffee orders on time in less budget
The moderate bargaining power with the supplier of the Local Lion coffee shop will lead to the moderate negotiation in process which will reduce the cost of the input material which will help the ultimate reduction in the final cost of the Local Lion coffee ultimately the lower prices for ultimate consumers of coffee.....................
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The Local Lion Coffee Shop Harvard Case Solution & Analysis