How to validate new brand territories and reduce the risks associated with innovation. A case study in the functional coffee market
When a brand decides to enter new markets, it is not just a question of “Can we do it?”, but also “Is it consistent with our history? Is it understandable to consumers?’
It is with these challenges in mind that Eumetra developed a project for a major international player in the coffee capsule market.
The challenge
The company was considering the development of a new generation of functional coffees: capsule-based drinks designed to support specific bodily needs and address emerging wellness demands.
Numerous concepts were under consideration, all of which were sound from a technical and regulatory standpoint.
The real strategic question was therefore: which territories offer the greatest potential for development, and which risk appearing implausible or culturally alien?
For the management, it was essential to understand:
- the level of awareness of various health issues and needs across different countries;
- the perceived relevance of the ‘coffee’ category as a potential solution;
- people’s receptiveness to each concept;
- the cultural and dietary differences that could accelerate – or hinder – adoption;
- which communication messages were best suited to the different markets.
The solution
To effectively address the need to develop product stretching, Eumetra designed an international comparative study capable of integrating scenario analysis, cultural insights and strategic assessment.
The approach was structured across three levels:
1. Analysis of needs and awareness
We measured awareness of various ailments, defined by ‘distance’ (I suffer from it /someone close to me suffers from it /I know others suffer from it /I am unaware of the ailment), identifying significant differences among the populations analysed.
2. Association with the category
We then explored the extent to which consumers associated different beverage categories, including coffee, with a potential solution to the ailment.
This enabled us to define a segmentation between consumers “ready to embrace the new product”, consumers “to whom the benefits of the product should be explained”, consumers for whom a prevention education programme should be launched, and consumers distant from the product.
3. Sensitivity to concepts and strategic activation
Finally, we assessed the potential of the various concepts and identified the most effective communication levers in the different markets.
The analysis was further enriched by cross-referencing it with the Eumetra map of dietary styles, made possible through proprietary link variables.
The impact for the client
The research enabled the client to transform a multitude of options into a clearer, more focused and sustainable innovation roadmap.
Key findings:
- reduction in the number of concepts;
- identification of country-specific market entry strategies: ranging from an immediate “product offering” to cultural awareness programmes aimed at communicating the benefits of functional coffee;
- development of a strategic SWOT analysis to support go-to-market decisions;
- greater focus on investment in innovation and communication.
This allowed us to interpret the results not only in terms of appeal, but also in terms of cultural and behavioural consistency.
Ad hoc solution: Opening New Routes
This case study illustrates how to tackle the challenges of growth and innovation through successful brand stretching.
Opening New Routes – part of Eumetra’s Ad hoc solution suite – is the research framework that helps companies identify the most effective new product or category developments.
The tool – customised on a case-by-case basis according to the client’s specific objectives – provides concrete guidance on:
- which audience segments to target;
- which channels appear most appropriate;
- which product communication strategies are most effective;
- the identification of enablers and barriers;
- a strategic assessment of the risks and opportunities associated with product/category expansion.
Opening New Routes thus enables us to understand not only whether an innovation is credible, but above all whether it can be culturally coherent, desirable and sustainable over time.
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