The Business Model Canvas - COTTI Coffee
Nowadays, coffee has become a part of many people's daily life. In recent years, a lot of fresh blood has poured into China's coffee market. As one of the rapidly rising brands, COTTI Coffee has become the focus of the industry with its unique marketing strategy and business model. This essay will analyze COTTI Coffee's marketing strategy through the business model canvas.
The extensive store network and strong supply chain system are key resources for the development of the brand. The success of COTTI Coffee is largely attributed to its joint venture model. COTTI does not charge franchise fees, but charge service fees according to the store's operating gross profit. This undoubtedly lowers the threshold for joining and the operating costs of the brand and is a key factor for the brand to expand stores rapidly.
In terms of key activities, COTTI Coffee not only focuses on the on-site production of coffee, but also invests heavily in supply chain management to ensure that every link from raw material procurement to product sales can operate efficiently. In addition, the company has carried out a full range of digital marketing layouts through mobile APPs, social media platforms, etc., realizing the integration of online and offline. The brand reaches customers through multiple channels, which not only increases the brand's market coverage, but also provides consumers with more purchasing convenience.
In terms of value propositions, COTTI Coffee is committed to providing high-quality, low-priced coffee, as well as a variety of product choices. These value propositions not only meet the needs of different consumers, but also make COTTI Coffee stand out among many competitors.
Establishing and maintaining customer relationships is another major focus of COTTI Coffee. The company attracts new customers through a low-price strategy. Instead of adopting a membership system, it periodically issues coupons and enhances customer loyalty through customer interaction and feedback. This customer-centric strategy enables COTTI Coffee to better understand market demand and adjust products and services in a timely manner.
In terms of customer segments, COTTI Coffee provides customized products and services for different groups such as coffee lovers, young consumers, office workers and business people. This precise market positioning enables COTTI Coffee to meet the needs of different customers and enhance its market competitiveness.
The brand also carefully selects key partners. The solid relationship established with reliable raw material suppliers ensures a stable supply of high-quality coffee beans and other necessary raw materials, while the cooperation with logistics service providers ensures the timely delivery of raw materials.
In terms of cost structure, COTTI Coffee's costs include raw material costs, store rental and decoration costs, human resource costs, logistics and distribution costs, and advertising and marketing costs. The company effectively controls costs and maintains competitiveness by optimizing supply chain management and improving operational efficiency.
Last but no least, COTTI Coffee's revenue stream mainly come from coffee sales revenue and food or other additional product sales revenue. Through diversified product lines and additional services, COTTI Coffee is able to achieve multi-channel revenue growth.
In summary, COTTI Coffee has successfully occupied a place in the coffee market through its well-designed business model. The brand has successfully filled the gap in the evaluation of coffee in the Chinese coffee market through parity strategy and has taken the initiative in the fierce market competition and gained an advantage in the competition.
However, this successful strategy cannot be simply copied and applied to other fields. After the success of COTTI Coffee, its founder launched the milk tea brand "Tea Cat", hoping to enter the market through the same low-price strategy. But the fact is that domestic milk tea brands are already saturated, and it is very difficult to gain a foothold only through price strategies. Therefore, the store was closed within less than half a year of opening, and the closure rate nationwide reached 23%.
Through the above analysis, we can see that the business model canvas of COTTI Coffee reveals the key factors for its success in the coffee market. COTTI Coffee has successfully built an efficient and competitive business model through its unique joint venture model, strong supply chain system, and emphasis on digital marketing. However, this successful model encountered challenges when it was expanded to the milk tea market, which shows that even successful business models need to be adjusted and optimized according to the characteristics of different markets. In a rapidly changing market environment, companies must maintain flexibility and innovation capabilities to adapt to the needs of different consumers and market changes.
The extensive store network and strong supply chain system are key resources for the development of the brand. The success of COTTI Coffee is largely attributed to its joint venture model. COTTI does not charge franchise fees, but charge service fees according to the store's operating gross profit. This undoubtedly lowers the threshold for joining and the operating costs of the brand and is a key factor for the brand to expand stores rapidly.
In terms of key activities, COTTI Coffee not only focuses on the on-site production of coffee, but also invests heavily in supply chain management to ensure that every link from raw material procurement to product sales can operate efficiently. In addition, the company has carried out a full range of digital marketing layouts through mobile APPs, social media platforms, etc., realizing the integration of online and offline. The brand reaches customers through multiple channels, which not only increases the brand's market coverage, but also provides consumers with more purchasing convenience.
In terms of value propositions, COTTI Coffee is committed to providing high-quality, low-priced coffee, as well as a variety of product choices. These value propositions not only meet the needs of different consumers, but also make COTTI Coffee stand out among many competitors.
Establishing and maintaining customer relationships is another major focus of COTTI Coffee. The company attracts new customers through a low-price strategy. Instead of adopting a membership system, it periodically issues coupons and enhances customer loyalty through customer interaction and feedback. This customer-centric strategy enables COTTI Coffee to better understand market demand and adjust products and services in a timely manner.
In terms of customer segments, COTTI Coffee provides customized products and services for different groups such as coffee lovers, young consumers, office workers and business people. This precise market positioning enables COTTI Coffee to meet the needs of different customers and enhance its market competitiveness.
The brand also carefully selects key partners. The solid relationship established with reliable raw material suppliers ensures a stable supply of high-quality coffee beans and other necessary raw materials, while the cooperation with logistics service providers ensures the timely delivery of raw materials.
In terms of cost structure, COTTI Coffee's costs include raw material costs, store rental and decoration costs, human resource costs, logistics and distribution costs, and advertising and marketing costs. The company effectively controls costs and maintains competitiveness by optimizing supply chain management and improving operational efficiency.
Last but no least, COTTI Coffee's revenue stream mainly come from coffee sales revenue and food or other additional product sales revenue. Through diversified product lines and additional services, COTTI Coffee is able to achieve multi-channel revenue growth.
In summary, COTTI Coffee has successfully occupied a place in the coffee market through its well-designed business model. The brand has successfully filled the gap in the evaluation of coffee in the Chinese coffee market through parity strategy and has taken the initiative in the fierce market competition and gained an advantage in the competition.
However, this successful strategy cannot be simply copied and applied to other fields. After the success of COTTI Coffee, its founder launched the milk tea brand "Tea Cat", hoping to enter the market through the same low-price strategy. But the fact is that domestic milk tea brands are already saturated, and it is very difficult to gain a foothold only through price strategies. Therefore, the store was closed within less than half a year of opening, and the closure rate nationwide reached 23%.
Through the above analysis, we can see that the business model canvas of COTTI Coffee reveals the key factors for its success in the coffee market. COTTI Coffee has successfully built an efficient and competitive business model through its unique joint venture model, strong supply chain system, and emphasis on digital marketing. However, this successful model encountered challenges when it was expanded to the milk tea market, which shows that even successful business models need to be adjusted and optimized according to the characteristics of different markets. In a rapidly changing market environment, companies must maintain flexibility and innovation capabilities to adapt to the needs of different consumers and market changes.
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