1. KeepCup Australia and US:
The University Market
This report is prepared by Raviv Bull, Krysten Gandhi, Olivia Kong,
Roy Ho, William Haveckin
Commercial in Confidence
October 2015
2. 2
Acknowledgements
KeepCup Consulting would like to acknowledge and thank the following individuals for
providing us with their support in completing this project.
Adam Katsonis, Brand Manager, KeepCup (Aus)
Maura Yammouni, Senior Account Manager, KeepCup (Aus)
Shireen Khadiwala, Executive Assistant, KeepCup (Aus)
Gregory Lambert, General Manager, KeepCup (US)
Mike Dilisio, Corporate Sales and Marketing, KeepCup (US)
Austin Chia, Subject Director, University of Melbourne
Andrew Jason Zur, Team Coach, University of Melbourne
Disclaimer
The University of Melbourne, its staff and participating students will bear no responsibil-
ity for any loss or inconvenience arising to the client organisation and/or any third party
which may arise through use of the data or recommendations from the Consulting Re-
search Project and final report.
If you have any questions regarding this report, please contact the Faculty of Business and
Economics via e-mail, fbe-capstonestudies@unimelb.edu.au
4. 4
Executive Summary
Purpose
Since 2009, KeepCup Ltd has been looking for ways to further engage youth with its mes-
sage of sustainability. As universities present the perfect marketplace in which to reach the
student population, the question has become how can KeepCup increase sales in the Aus-
tralian and U.S. university sectors?
Scope & Methodology
In Australia, as KeepCup is already an established brand the focus will be on examining
new and improved ways to engage with university students. This involves a dissection of
previous campaigns and business relationships in an attempt to examine how they can be
improved and re-implemented in the future. Primary data collection for the Australian mar-
ket was conducted by collecting surveys and interviews.
Dissimilarly, KeepCup has not gained similar traction in the U.S, partly due to the extensive
licensing regulations. Potential entry strategies have been devised to break into the U.S.
university sector while targeting specific universities. For the U.S., phone interviews were
used to obtain information regarding licensing and product requirements.
Major Findings
In Australia, the analysis of KeepCup’s business relationship involved three key areas: cafes,
sustainability offices, and residential colleges. KeepCup Consulting discovered these rela-
tionships can be further developed by engaging business partners in new ways, as well as
the issue of brand awareness among Australian university students, an area which is also in
need of improvement.
Analysis of the U.S. market demonstrated the need to segment the market and take into
consideration its vastly different coffee cultures. The main entry strategies developed were
through Barnes & Nobles (B&N), residential halls and student clubs. A significant finding in
the U.S. market was that displaying the logo of the target institutions is key in driving sales.
Hence, it is recommended that CLC licensing be obtained if KeepCup truly seeks to break
through into the U.S. university market. Furthermore, residential halls and student clubs,
who represent a significant opportunity to increase sales, also requiring their own licensing.
Recommendations & Conclusion
For the Australian market, a detailed action plan covering one academic year is presented.
The first phase looks to address brand awareness, while the second addresses business re-
lationships and brand loyalty and the third phase focuses on residential halls.
The U.S. recommendations detail a similar three-phase action plan to be implemented at
the targeted universities in Seattle, Portland and San Francisco. Phase 1 outlines the need
to firstly target B&N, phase 2 draws on the similarities with the Australian market and fo-
cuses on increasing physical presence on campus and the ensuring final phase highlights
the need to gain product popularity before engaging student clubs and residential halls.
Finally, Phase 3 then targets the student club and residential hall population. The recom-
mendations conclude with several key ways to engage the wider consumer market such as
partnering up with charities like the Red Cross.
Ultimately, the conclusion draws from the key findings and recommendations above. While
it acknowledges the key limitations, the section outlines the need to consider the proposed
action plans designed to increase sales in both university markets.
5. 5
Table of Contents
Executive Summary...……........………………………………………………………………………………………….4
1. Introduction……………………………………………………………………………........………………………......7
1.1 Background………………………………………………………………………………........……………..7
1.2 Problem Statement and Purpose………………………………………………………........……..7
1.3 Project Scope..………………………………………………………………………………………...........7
1.4Methodology…………………………………………………………………………………………...........8
1.4.1 Diagrammatic Summary of Project Methodology……………………...........8
1.4.2 Data Sources and Collection Methods……………………...…………….............9
1.4.3 Methodological Scope and Limitations…………………….........................10
2. KeepCup’s Strategy for the Australian University Market……………………........................11
2.1 Business Relationships………………………………………………………………....……...……….11
2.1.1Cafes…………………………………………………………………………….....................11
2.1.2Sustainability Offices………………………………………………………………..........12
2.1.3 Residential Colleges…………………………………………………………………........13
2.2 Previous Marketing and Promotional Strategies…………………………....................14
2.2.1 Melbourne University Sustainability Pledge…………………………............14
2.2.2 Kill The Cup……………………………………………………………………………..........15
2.2.3 Reuse HQ…………………………………………………………………………….............15
2.3 Key Findings from Survey Results……………………………………………………………........17
3. Expanding KeepCup’s presence in the US college market……………………........................20
3.1 Geographic Segmentation……………………………………………………………...................20
3.1.1 U.S. Consumer Profile……………………………………………………………...........20
3.1.2 Target Locations……………………………………………………………....................22
3.2 Avenues For Entry……………………………………………………………...............................23
3.2.1 Barnes & Noble……………………………………………………………....................23
3.2.2 Residential Halls and Student Clubs…………………………………………….....24
3.2.3 University Sustainability Offices ………………………………………………….....26
3.3 Regulation and Licensing…………………………………………………………........................27
3.3.1 Collegiate Licensing Company……………………………………………………......27
3.3.2 Licensing Required for Residential Halls and Student Clubs...............28
4.Recommendations……………………………………………………………............................................29
4.1 Future Strategies in the Australian University Market…………………………….........29
4.1.1 Phase 1: O-Week and Advertising…………………………….........................29
4.1.2 Phase 2: Cafes and Sustainability……………………………..........................30
4.1.3 Residential Halls……………………………....……………………………..................31
4.2 Future strategies in the U.S. University Market……………………………....................32
4.2.1 Target Locations and Suitable Universities……………………………............32
4.2.2Licensing……………………………....……………………………....………………….......32
4.2.3 Avenues for Entry……………………………....……………………………................33
4.2.4 Further Recommendations: KeepCup for a Cause...............................35
5. Conclusion…………………………….........……………………………....……………………………................36
6. References……………………………....……………………………....…………………………….....................38
7.Appendices……………………………....……………………………....……………………………....……...........41
6. 6
List of Figures
Figure 1: Project Methodology
Figure 2: Primary and Secondary Data Sources
Figure 3: Responses from University Sustainability Offices
Figure 4: Melbourne University Sustainability Pledge
Figure 5: Hall of Badges
Figure 6: Brand Recognition
Figure 7: Brand Perception
Figure 8: Customer Loyalty
Figure 9: KeepCup Environmental Analysis
Figure 10: Share of Coffee Consumption by Location - source Statista
Figure 11: Position of U.S. Cities based on Coffee Culture and Sustainability
Figure 12: Competitive Landscape for B&N with regards to selling KeepCups
Figure 13: Facts about Greek Fraternities and Sororities
Figure 14: Fraternities and Sororities in All Target Locations
Figure 15: Responses from University Sustainability Offices
Figure 16: Timeline of Action Plan for Australian University Market
Figure 17: The Most Suitable Universities for KeepCup’s Entry in the U.S.
Table 1: Limitations of Reuse HQ
Table 2: Key Facts about USA Coffee Market 2015 from E-Imports
Table 3: CLC Licensing Cost Analysis
Table 4: Strategies of Entry that Require Licensing
7. 7
1. Introduction
1.1 Background
KeepCup, the leading producer of the environmentally friendly alternative to disposable
cups, has grown rapidly since its inception in 2009. (1) Given the high volume of students
coming through universities each year, these institutions offer a unique opportunity for
KeepCup to engage students with a message of sustainable living. With this opportunity in
mind, KeepCup is continually looking for appropriate methods and suitable promotional
campaigns to engage with the Australian university student population.
Whilst in Australia universities have been a key market, KeepCup has been unable to gain
traction in the U.S. university sector due to extensive licensing regulations despite seeing
growth in the U.S. market. More than this, US universities present a very different set
of challenges with a different way of consuming coffee to Australia and even within the
country. This means KeepCup has to take a different approach to the US university sector
and with a larger team now in place in Los Angeles, KeepCup now has the capabilities to
focus more resources. Thus, the Melbourne based company wishes to explore the feasibil-
ity of entry and also potential avenues into the U.S. collegiate sector.
1.2 Problem Statement and Purpose
With the Australian university sector remaining one of KeepCup’s most profitable markets,
KeepCup Consulting has been commissioned to highlight areas for improvement in Keep-
Cup’s sale and promotional strategy with the ultimate purpose of increasing sales in the
Australian university market. Furthermore, with a clear opportunity for KeepCup to enter
the U.S. university market identified, KeepCup consulting has been tasked with determin-
ing strategies to enter the US university market, while addressing the issues of licensing.
The ultimate purpose of this project is thus to increase sales in both the Australian and
U.S. university markets.
1.3 Project Scope
This report will explore future growth options in the Australian market and look to synthe-
sise proposals for further marketing campaign opportunities. Then the report will turn to
the U.S. collegiate market and explore strategies for expanding KeepCup’s presence in the
U.S. collegiate sector, paying particular attention to the relevant regulatory and licensing
restrictions.
8. 8
This report is designed to investigate the following points as agreed between KeepCup Con-
sulting and Project Sponsor, Adam Katsonis.
Project 1: Increase KeepCup’s Sales in the Australian University Market
Formulate recommendations specific to the Australian university market.
Ascertain success of previous business relationships and marketing strategies
KeepCup has already undertaken to target the Australian university market.
Project 2: Increase KeepCup’s sales in the U.S. University Market
Investigate the U.S. university market, particularly the relevant regulatory and
licensing restrictions
Find potential partnerships and initiatives for KeepCup and ascertain avenues for
Formulate action plan with recommendations for entry into the U.S. university
market
1.4 Methodology
1.4.1 Diagrammatic Summary of Project Methodology
In developing recommendations for KeepCup in both the Australian and U.S. university
markets, we followed a systematic approach as shown in the figure below.
Recommendations
> Create recommendations based on key survey
findings (Aus)
> Suggest possible strategies to enter into the
university market (U.S.)
Investigation and Data Collection
> Create and finalise data collection plan
> Formalise survey and interview questions (Aus)
> Research university regulatory environment (U.S.)
Analysis
> Analyse existing and past campaigns
> Determine trends from interview and survey findings
> Perform comparative analysis of entry strategies (U.S.)
Initiation of Project
> Outline and approve project aim and scope
> Determine key stakeholders and deliverables
> Research existing and past campaigns
01
03
02
04
Figure 1: Project Methodology
9. 9
1.4.2 Data Sources and Collection Methods
Data sources used for the purpose of this report include primary and secondary data in the
form of semi-structured interviews, surveys and industry reports. Figure 2 below shows the
sources used.
Figure 2: Primary and Secondary Data Sources
Melbourne University Sustainability Report
Data
Sources
Primary Secondary
Face-to-face Interviews
Obtain deeper insight into the rela8onship between
Melbourne University cafes and KeepCup to determine
how to further build on these rela8onships.
(Sample size: 7)
22-Ques:on Electronic Survey
Measure brand awareness and loyalty of
KeepCup in the Australian university student
market. (Sample size: 107)
3-Ques:on Semi-structured Email Survey
Gauge the interest of U.S. university
sustainability offices towards a reusable cup
campaign. (Sample size: 35)
4-Ques:on Open-ended Email Survey
Assess the sa8sfac8on of Australian and New
Zealand university sustainability offices with
both the company and the product.
(Sample size: 7)
Semi-structured Phone Interviews
Deepen understanding of Barnes and Noble’s
product purchase and distribu8on regula8ons.
(Sample size: 3)
KeepCup’s own promo8onal materials pertaining
to past campaigns and ini8a8ve
Reports and applica8ons from the Collegiate
Licensing Company (CLC)
Annual financial reports for Barnes and Noble
Online publica8ons and industry reports
exploring the U.S. collegiate sector and U.S.
coffee market
11. 11
2. KeepCup’s Strategy in the Australian University
2.1 Business Relationships
This section will identify, discuss and analyse KeepCup’s current relationships with distribu-
tors of its KeepCups to the end consumers – students. In a search to find effective ways of in-
creasing sales across the university market, KeepCup Consulting has performed primary and
secondary research into KeepCup’s current business relationships in the university market.
2.1.1 Cafes
KeepCup Consulting explored current relationships KeepCup has with university cafes. To
achieve this goal, Melbourne University was used as a case study and 7 on-campus cafes
participated in the semi-structured interviews. The purpose of the interviews was to de-
termine café’s perception of KeepCup as well as assessing the desire for future potential
partnerships and issues the cafes might have with the product. The interviews were also
designed to inquire whether cafes were willing to provide discounts as incentives for Keep-
Cup users or offer KeepCup products for sale, where both strategies may lead to an increase
in sales in the Australian University market. A copy of the general questions asked can be
seen in appendix 2.
Perceptions of KeepCup
Cafes in general are satisfied with the KeepCup, much like the two cafes above. The major
competitor in the Melbourne University market is Frank Green, which was sold in 4 out
of the 7 cafes that were interviewed. The manager of The Potter mentioned that the cafe
ordered Frank Green because a student designed the product so he thought the product
would better suit student needs. However, the Frank Green cup also has many disadvantag-
es such as being more expensive and not as suitable with barista equipment.
Market
“The only size that
doesn’t fit in coffee
machines is the 16
ounce because the
cup is too tall”
- Manager, Castro’s Kiosk
“The KeepCup is
perfect for blending
milk and coffee”
- Manager, Carte Crepes
12. 12
Desire for Future Partnerships
When asked whether there were existing discounts in place for KeepCup holders, KeepCup
Consulting found out that most cafes do already have existing discounts in place such as 10
cents for Carte Crepes and 20 cents at Baretto Espresso Bar. The problem is that this dis-
count is offered to all reusable cup holders and not just KeepCup holders. Many customers
also are not aware of these discounts because they are not being actively advertised. Hav-
ing a formalized discount agreement with cafes is also very difficult because the number
of cafes on campuses as well as the need to provide them with an incentive for the dis-
counts. In addition, some cafes such as Carte Crepes mentioned that their primary means
of generating revenue is to sell as many beverages as possible and that limits the time they
have available for advertising other products such as KeepCups. Another problem for some
cafes is the minimum order quantity, as stated by the Manager of Castro’s Kiosk above.
2.1.2 Sustainability Offices
This section outlines and analyses KeepCups relationship with sustainability offices around
AustraliaandNewZealand.Inordertocollectthisdata,anopen-endedsurveywasconducted.
ThepurposewastoassessKeepCup’srelationshipwiththesesustainabilityoffices,andevalu-
atehowitcouldbeimprovedtofurtherdrivesalesamonguniversitystudentsviatheseoffices.
Why does the
sustainability office
purchase them?
How successful
are these exis:ng
rela:onships?
Free
Gi>
Resell
A dream to
deal with
Very
professional
Sugges:ons for
improvement?
Online
ordering
Special
offers
Have you had any
issues with the
service?
Slow
responses
Too
expensive
“We make most money
during rush hour when
students just want to buy
coffee and go, so we have
no time to sell products”
- Manager, Carte Crepes
“The minimum order size
for KeepCups with logos
was way too large. I would
sell the cups but did not
want to order so many”
- Manager, Castro’s Kiosk
Figure 3: Responses from University Sustainability Offices
13. 13
With regards to Figure 3, while all of the offices acknowledged that their expectations of
the product were met with regards to the product being delivered, some universities raised
minor issues with the order process. The Queensland University of Technology (QUT) and
the University of Auckland expressed their delay with placing orders, as this process is cur-
rently performed via email. One such recommendation, which QUT suggested, would be to
initiate online ordering among the sustainability offices, which will need to be optimised to
allow each sustainability office to place their individual orders.
Furthermore, three out of the seven universities commented on the price and suggest-
ed that KeepCup should offer more discounts. However, this decision entirely depends on
KeepCup’s willingness to drop margins to capture a greater share of the market.
2.1.3 Residential Colleges
KeepCup has already forged a relationship with several of the Australian universities’ top
colleges, such as a few of the University of Melbourne’s residential colleges: Ormond Col-
lege, Trinity College, and Queens College. These colleges have placed orders upwards of
200 KeepCups each, which have been used as gift to students either as a welcoming or
leaving gift. Although limited by time and access to the market, our research indicated that
there were still several colleges whom had not been approached by KeepCup.
As a test run, KeepCup Consulting discussed the idea of providing end of year gifts to stu-
dents at St. Mary’s College. The college, which strives to improve in areas such as sustain-
ability awareness, approved the idea and placed an order of 160 KeepCups in September
2015. This demonstrated the effectiveness of simply approaching potential clients to in-
crease sales of KeepCups, as the product and company has already built up popularity.
KEY TAKEAWAYS
2.1
• Frank Green is a major compe0tor, however, its product is more expensive and
less compa0ble with coffee machines than the KeepCup.
• Cafe owners are reluctant to order KeepCups to sell at cafes but are willing to act
as a distributor for KeepCup if they are provided with the product and receive a
por0on of the proceeds.
• Cafes give varying amounts of discounts to reusable cup holders and the discount
amount is hard to standardize, but managers are interested in marke0ng
campaigns to widen their reach on campus.
• KeepCup is seen as a very professional company to deal with.
• Email order system needs to be streamlined.
• Opportunity to move university orders to the online system.
• Have increased sales through increased brand awareness
by simply approaching residen0al colleges.
14. 14
2.2 Previous Marketing and Promotional Strategies
In order to achieve the goal of increasing sales in the University market, KeepCup Con-
sulting evaluated past KeepCup campaigns and promotional strategies to determine ef-
fective past strategies as well as determine areas in need of improvement going forward.
The three main marketing outlets evaluated were the Melbourne University sustainabil-
ity pledge, the partnership with Kill The Cup campaign, and KeepCup’s own Reuse HQ.
2.2.1 Melbourne University Sustainability Pledge
Since 2010, Melbourne University has initiated the Sustainability Commitment and has
been a highly recognisable sustainability awareness tool. Participants, both students and
staff, agreed to a sustainability pledge and in return received a free KeepCup, which the
sustainability office purchased from KeepCup Pty Ltd.
Over 10,000 KeepCups ($70,000) sold to Melbourne University (4).
The pledge has reduced electricity costs and
increased recycling rates.
Figure 4: Melbourne University Sustainability Pledge
Met
expectations
One of their
most popular
engagement
activities
Feedback observed from an email
survey conducted
by KeepCup
Consulting:
A report conducted by the Melbourne University
Sustainability Manager in October 2014 highlighted its
very positive relationship with KeepCup and the desire to
continue the pledge (4).
Figure (x) illustrates the successful relationship KeepCup has with the Melbourne University
Sustainability Office. In fact, results from the survey showed that there is no clear way to
improve this relationship to further drive sales.
However, when participants were asked why did they not use their cup more often, many
maintained that they either forget to bring their cup with them, or that they forgot they
made the pledge in the first place. Here there is an identified need for the university to re-
mind students of the pledge they made and the free KeepCup they received. As currently
there is no channel for this type of communication, it would be beneficial for KeepCup to
find a way to connect and develop a relationship with the students, for example through
Reuse HQ or through quarterly email reminders.
15. 15
2.2.2 Kill The Cup
KeepCup partnered with the Kill The Cup university challenge in 2014. The purpose of the
partnership was to extend the KeepCup brand into the U.S. while also to encourage stu-
dents to reduce waste by using reusable cups. With a discount offered on each KeepCup
purchase through a university’s promo code, students were challenged to upload creative
photos using their reusable cups for a weekly grand prize.
The team’s analysis revealed that the campaign did manage to gain some traction among
students, but its outreach was restricted due to the limited number of participating univer-
sities. Furthermore, the team found that providing a code to each university, which offers
students a discount on purchases, proved to be a popular incentive for driving additional
sales. Hence, KeepCup Consulting believes the campaign’s platform, with its corresponding
discounts, does hold considerable potential to increase sales among students. However,
considerably more universities would have to participate in order for the campaign to deliv-
er a substantial increase in sales.
2.2.3 Reuse HQ
Reuse Revolution HQ, or Reuse HQ, is an online platform introduced by KeepCup in late
2014, dedicated to promoting the continuous use of reusable coffee cups. (5) Reuse HQ
quantifies the achievements of users in reducing disposable cup waste by measuring the
impact of individuals and organisations. (6)
Our analysis of Reuse HQ acknowledges that this platform has the po-
tential to stimulate brand loyalty and further drive sales among univer-
sity students. Firstly, it is easy to use, only requiring users to provide
the number of KeepCups they use each week. (6) Secondly, the fact
that users are encouraged to hit milestones to obtain achievement
badges (as shown in Figure 5) creates a more active and impactful ex-
perience for a KeepCup user. If collectively used by the majority of
consumers, the platform has the potential to push KeepCup ahead of
the competition by encouraging these users to be part of the ‘bigger
movement.’ (5)
Figure 5: Hall of Badges
Limita&on
Reuse HQ automatically updates
customer usage every week
regardless of actual usage. (6)
Reuse HQ incentivises users
through positive affirmation rather
than tangible or loyalty rewards.
Users use the KeepCup the same
amount of times each week.
Users are motivated to use the
KeepCup by virtual affirmations
(milestones, hall of badges)
Assump&on
Large margin for error, individual and
aggregated global statistics may be
unreliable
Positive affirmation alone is unlikely to
motivate university students.
Result
Table 1: Limitations of Reuse HQ
Ultimately, two key problems exist for Reuse HQ: firstly there is a lack of awareness among
university students that the platform even exists, with only 1 out of 72 respondents noting
that they have heard about it (appendix 1, question 13); and secondly, as shown in Table
1 it is unlikely to gain traction among university students without tangible rewards and an
accurate tracking system.
16. 16
KEY TAKEAWAYS
2.2
• KeepCup has had a highly successful rela2onship with the Melbourne University
Sustainability Office.
• Problems found with pledge programs are students oAen forget to bring their cup
with them, or that they forgot they made the pledge and had a KeepCup in the first
place.
• There is need for the university to remind students of the pledge they have made and
the free KeepCup they received.
• Using discount codes to promote KeepCup sales is a proven strategy.
• When assessing similar campaigns, a key considera2on is the number of par2cipa2ng
universi2es.
• When partnering with ini2a2ves, it is important to consider the ability of the ini2a2ve
to reach KeepCup’s target consumer sector.
• Reuse HQ has poten2al to s2mulate brand loyalty as it's easy to use,
useful for consumers to track their usage and encourages their
con2nued use.
• Reuse HQ has some limita2ons such as;
- low accuracy of tracking actual KeepCup usage
- does not provide tangible rewards
17. 17
2.3 Key Findings from Survey Results
To determine KeepCup’s brand recognition, brand perception, and customer loyalty, a
22-question survey was released to the Melbourne University student population. Re-
sponses from over 100 students have resulted in extensive findings. The key findings are
presented in this section, while the remainder of the results may be viewed in appendix 1.
84.1%
57.9%
Do you recognise the
product above?
(A picture of a KeepCup was shown)
Are you aware this product
is called a KeepCup?
BRAND RECOGNITION
BRAND PERCEPTION
Figure 7
Figure 6
What is it you would most like to change
about your KeepCup?
Do you
associate
sustainability
with this
product?
Neutral Strongly
Agree
Agree Strongly
Disagree
Disagree
50
45
40
35
30
25
20
15
10
5
0
Make it
easier
to clean
Make it
Spill-proof
Not very
convenient to
carry around
18. 18
CUSTOMER LOYALTY
Figure 8
3-4
%mes a
week
Once
a month
Once a
week
Daily
39.4%
9.1%
27.3%
24.2%
How often do you use it?
(KeepCup)
74.3%
Would you recommend
KeepCup to a friend?
Which of the below incentives would further encourage you
to use a KeepCup?
0
10
20
30
40
50
60
70
80
90
100
Freq.
10-cent discount on coffee
Free upsize of coffee
20% discount on next KeepCup purchase
An app to track your sustainability
impact from using KeepCup
Brand recognition is defined as, “the extent to which the general public (or an organiza-
tion’s target market) is able to identify a brand by its attributes.” (8) When respondents
were asked to identify the brand of KeepCup (see figure 6), 84.1% recognized the product
but only 57.9% knew the product is called a KeepCup. This highlights the fact that brand
recognition of KeepCup is lower than expected among university students.
For brand perception, in figure 7, respondents were asked to respond to a question pertain-
ing to the sustainability brand association: 70% of respondents agreed or strongly associate
sustainability with the KeepCup. This indicates that customers are aware of KeepCup’s sus-
tainability benefits, however, there is still room for improved advertisement of this message
since sustainability is one of KeepCup’s main goals.
19. 19
Respondents were also asked what they would change about the KeepCup to deter-
mine any perceived inconveniences of the product. The topical issues raised were
that the KeepCup is not spill proof (often leaks), inconvenient to carry around and
hard to clean. These three issues may hinder its reputation, and thus decrease sales.
Lastly, to address brand loyalty (see Figure 8), KeepCup Consulting focuses on factors that re-
sultincustomersfrequentlyusingtheKeepCupaswellthelikelihoodtheywouldrecommend
the product to a friend. Despite only 40% of respondents using their KeepCups once a month
while less than 10% use the cups daily, 74.3% would still recommend the product to a friend.
While students may have positive perceptions of the product, the frequency with which
students use their KeepCups should be addressed to increase brand loyalty as the more fre-
quently students use the KeepCup the more in-hand advertising will occur, which is the indi-
rect link to increase sales. The following survey question indicated that a 10-cent discount on
coffee,followedbyafreeupsizeofcoffee,wouldmotivatemorefrequentuseoftheKeepCup.
KEY TAKEAWAYS
2.3
• Consumer know of the KeepCup product but are unable to iden7fy the brand of
“KeepCup”.
• KeepCup’s sustainability message is ge>ng to the consumers but
many think that the product is too expensive or has problems with
the design of the cup lid.
• KeepCup owners oAen forget to use the cup but s7ll mostly have
a favorable view of the product.
20. 20
3. Expanding KeepCup’s Presence in the U.S.
University Market
3.1 Geographic Segmentation
3.1.1 U.S. Consumer Profile
Strengths Weaknesses Opportuni2es Threats
Internal - KeepCup External – US Universities
● Promo2on of an
environmental
conscious
● Customizable
(logos, colours)
● Fits under barista coffee
machines
● Differen2ated product to
‘compe2tors’ like
Starbucks cup
● Strong social media
presence (Instagram,
Facebook, TwiFer)
● Dishwasher friendly
● KeepCup Brew is
rela2vely expensive to
US compe2tors products
● Plas2c KeepCup is not
always viewed as a
sustainable product
● Young company - brand
awareness is lacking,
● Limited resources in the
States.
● Consumers who already
own reusable cups may
not be suscep2ble to
switch
● No in-store sales
● Substan2al University
funding
● Biggest coffee
consumers in the world
● Speciality coffee is
growing in popularity
● Join forces with
environmental
organisa2ons
● Extend into in-store
sales
● The US has a different
coffee culture
● Items with college
logos require licensing
● More expensive than
some other
compe2tors’ products,
especially the Brew
● Threat of new
subs2tutes and
entrants into the
market
Figure 9: KeepCup Environmental Analysis
One of the largest threats to KeepCup is the vastly different coffee culture the U.S. has
when compared to Australia. Further analysis shows that the coffee culture in fact differs
between and within states. This highlights the importance of identifying the areas most
suitable in which to expand KeepCup’s presence.
In order to determine whether the product has the potential to be successful in the U.S.
University Market, the team used a Forbes framework analysing the qualities required of a
successful product (see framework in Appendix 3). After establishing the product has the
potential for success, KeepCup Consulting has shifted its focus to examining the internal
and external factors that come into play for KeepCup in the U.S. university market. Figure 9
is an environmental analysis for KeepCup entering the region.
21. 21
Facts
50% (30 million people) of the
population over the age of 18
consume coffee daily.
Men and women drink the same
amount of coffee.
The average coffee drinker consumes
three cups per day.
30% (18 million people) drink coffee
occasionally.
The average cup size is 9 ounces.
Makes Americans the leading coffee
consumer in the world.
Can target both, but for different reasons:
men indicated that it helps them get the
job done; women think of coffee as a
good way to relax.
Highlights the need for reusable
coffee drinkware.
Again, emphasising the large
potential target market for KeepCup.
The small KeepCup (8 ounce) is likely to
be too small for most American coffee
drinkers.
Observa,on/Analysis
Table 2 presented above emphasises the large potential target market KeepCup has in the
U.S.. However, the location in which these coffee drinkers consume their coffee must also
be considered, as this will directly influence their desire and need to use a KeepCup. This
notion is supported by the figure below, which shows that 74% of the coffee consuming
population drinks their coffee at home, where the need to use a KeepCup is diminished.
Table 2: Key Facts about USA Coffee Market 2015 from E-Imports (9)
Home Work Eating Place Travelling Other
100%
80%
60%
40%
20%
0%
Loca-on
Share of Coffee Consumed
Share of Coffee Consump0on by Loca0on (2015)
Figure 10: Share of Coffee Consumption by Location - source Statista (10)
Based on Figure 10, KeepCup’s can only realistically target 16% of the market - the 12%
that consume their coffee at work and the 4% who consume it while traveling. Although
no available data exists for coffee consumption habits of the university population across
the U.S., these percentages are likely to be lower for students due to the reduced commute
time when living on or nearby campus, and the lower work participation rates when study-
ing full-time. A study in 2013 from the University of New Hampshire suggested that the
average student consumption of coffee was 2-6 cups per week. (11)
22. 22
Given the assertion that young university students drink less coffee than working adults,
and the fact that most coffee is in fact consumed at home, it is important to further seg-
ment the market to find areas where the KeepCup is likely to experience greater popularity.
Using the findings from KeepCup’s success in Melbourne and Australia, it is apparent that
the two most important demographic factors are the coffee culture and the emphasis the
population places on sustainability.
3.1.2 Target Locations
To rank which U.S. cities are most appropriate, KeepCup Consulting has looked at the two
most important demographic factors: coffee culture and the emphasis on sustainability
(see 3.1.1). Given that these factors are difficult to measure, the team developed an ordinal
ranking system based on current rankings of each U.S. city. (12-19)
Both factors were cross-analysed and have been displayed in the quadrant diagram below.
Figure 11: Position of U.S. Cities based on Coffee Culture and Sustainability
Here, the northeast quadrant combines both a strong coffee culture with a high sustain-
ability ranking. These are the locations that are likely to yield KeepCup its greatest success
in the U.S. Market.
23. 23
3.2 Avenues for Entry
The strategies recommended for the U.S. and Australian university sectors will be funda-
mentally different given that KeepCup is a new player in the U.S. university market whereas
in Australia it has already established a significant presence. For example, in one market we
look to improve existing business relationships whilst in the other we seek to create new
ones. Moreover, the U.S. market presents the additional hurdle of obtaining the necessary
license in order to sell the cup with a logo. These issues will be addressed in the following
sections.
3.2.1 Barnes & Noble
Barnes & Noble is a large retail bookseller in the U.S., currently owning bookstores at 724
university campuses, reaching more than 5.2 million students.(20) It’s college stores are
growing rapidly and proving to be a profitable business structure and thus offer a plat-
form for KeepCup’s to sell to an ever growing population of American university students.
Figure 12 below is an analysis of the competitive landscape of Barnes & Nobles with regards
to selling KeepCups:
Threat of New Entrants
• Starbucks reusable cup: popular in the U.S.
and already has a foothold in B&N cafes
• Joco Cup sold online on its website and
through Amazon; likely to compete with
KeepCup if it enters B&N
• High ease of subsEtuEon if comparable
product enters (i.e. Joco)
Bargaining Power of Supplier
(KeepCup)
• KeepCup has liHle negoEaEng power over
B&N
• PotenEally strict contractual obligaEons
Threat of Exis<ng Subs<tutes
• Tumbler: not perfect subsEtute, but serves
a similar purpose; not barista-friendly
• Perceived level of product differenEaEon
with the exisEng products at B&N
Bargaining Power of Buyers
(Uni Students)
• University students have liHle
influence over B&N pricing
• Students have liHle, if any income, and
are therefore very price sensiEve
Poten<al
Entrants
Subs<tutes
Suppliers Buyers
High
Pressure
Low
Pressure
High
Pressure
M
edium
Pressure
Figure 12: Competitive Landscape for B&N with regards to selling KeepCups
KEY TAKEAWAYS
2.2
• A large threat in the U.S. for KeepCup is the vastly different coffee culture when
compared to Australia.
• Coffee culture differs within states. Thus important for KeepCup to iden>fy most
suitable areas in which to expand KeepCup’s presence.
• There is a large poten>al market in the U.S. however, the loca>on (home, commu>ng
etc.) in which these coffee drinkers consume their coffee must also be considered.
• Two most important demographic factors determining the popularity of KeepCups
from experience in Australia are the coffee culture and the emphasis
the popula>on places on sustainability.
• Looking at coffee culture and the emphasis on sustainability as
determining factors, San Francisco, SeaHle and Portland ranked
highest. KeepCup should target these areas for ini>al entry.
KEY TAKEAWAYS
3.1
24. 24
The competitive analysis presented in Figure 12 outlines the lack of comparable products
currently offered for sale at B&N. Although tumblers could be regarded as a substitute,
there is a high level of product differentiation with KeepCup being barista standard and
having the sustainability brand association. Furthermore, another advantageous aspect is
that B&N does not require licensing to sell the general unlabeled product in its stores.
An examination of these stainless steel tumblers, which are sold for $15 (US) can give an
indication of the potential for KeepCups. In phone interviews with Barnes & Noble univer-
sity store managers, the team learned that about 50 tumblers were sold per month while
school apparel were the most popular items in the store. Although 50 tumblers per month
is a modest number, when the product is being sold across all 724 university stores that
results in 36,200 tumblers sold per month.
Furthermore, the bargaining power of the end consumers will have little influence on Keep-
Cup’s decision in its partnership with B&N. However, the analysis shows the existence of
high pressured threat of new entrants into the market, with the Starbucks reusable cups
and the Joco cup already available in the wider U.S. market. In addition, due to the bar-
gaining power B&N holds over KeepCup, the firm will have to be mindful of its contractual
obligations when partnering with a strong player in B&N. For more information regarding
the process of getting KeepCups into B&N stores please see appendix 4.
3.2.2 Residential Halls and Student Clubs
Another potential entry strategy for the firm is offering students KeepCups branded with
the logos of their residential halls and student clubs. Partnerships can be made with halls
and student clubs to purchase the cups in wholesale quantities and offer them to their
students
Residential Halls
Before commencing with licensing applications, KeepCup must consider which entry strat-
egy presents the most potential for increasing sales. As was expressed in the report, the
team’s research has revealed that offering branded KeepCups to residential halls at whole-
sale prices has proved successful in securing sales and promoting brand awareness at a
number of universities across Australia. (21) This was further illustrated by the team’s suc-
cessful partnering of KeepCup and St. Mary’s College, when the latter was searching for a
farewell gift to offer its students. While there are many residential halls found in Univer-
sities across Australia, they only account for a small fraction of the student population.
In contrast, American university students are more disposed to living on campus where
residential halls and dorms house the great majority of students. Hence, employing this
strategy in the US exposes KeepCup to a much larger consumer market.
Student Clubs
The team’s research into student clubs and societies throughout the U.S. university market
revealed that Greek fraternities and sororities stand out as an avenue for entry on a nation-
al scale (22). Their reach far exceeds state borders with Chapters in almost every campus
across the country.
25. 25
Annual fee for a new member can exceed$1200 (USD).
Accoun;ng for all other customary outlays on events and
ac;vi;es on the house’s calendar, the typical student can
expect to spend over $1500 annually on his Greek lifestyle. (23)
With 123 clubs and 9 million members across the U.S.
The high annual fees and extensive reach mean the potential revenue this market may
generate for KeepCup is substantial (see Figure 13). This is further supported by two phone
interviews the team conducted with representatives at the online stores of the Alpha Kap-
pa Phi fraternity and the Kappa Kappa Gamma sorority. The representatives informed the
team that last year the fraternity store sold 512 of its travel mugs, at $9.95 each, to students
at Portland State University alone, while the sorority store sold 6927 of its tumblers, at $12
each, nationwide.
Ensuing research has revealed that almost every American university is home to a consid-
erable number of fraternities and sororities. (24) As such KeepCup consulting has focused
on the more prestigious and well-financed clubs who have a national presence. Below is a
figure displaying some of the fraternities and sororities who have Chapters in all of the tar-
get locations which were highlighted in the quadrant diagram in section 3.1.2.
Figure 13: Facts about Greek Fraternities and Sororities
Fraterni(es Sorori(es
Figure 14: Fraternities and Sororities in All Target Locations
26. 26
3.2.3 University Sustainability Offices
Entry via sustainability offices would enable KeepCup to establish a formal relationship with
universities instead of entry to universities via indirect methods, such as cafes or student
clubs. A semi-structured four-question survey was carried out with a sample of 35 sustain-
ability offices in universities (with enrolment >7000 students) across the U.S.. The results
are shown in the charts below.
The purpose of the survey was to gauge the interest of the offices towards reusable coffee
cup campaigns. Findings indicate that KeepCup’s cause would be very relevant for these
offices, as some of them have already been involved with reusable cup campaigns in the
past. However, an interesting finding of the survey was that 15% (89% less 74%) of those
interested do not consider a pledge program to be the best option. These were mostly sus-
tainability offices that have done pledge programs before and found that students do not
remember or follow through their pledges.
A full verbatim for the open-ended survey is presented in Appendix 5 for Northwestern Uni-
versity. Of note, Villanova University suggested that an ongoing rewards program that tracks
behavior changes over time would be more effective in promoting sustainability. Also, it can
be deduced that having the university logo on reusable cups is important to sustainability
offices, therefore this entry method may require KeepCup to obtain CLC licensing.
89%
Are you interested in
campaigns involving
reusable coffee cups?
77%
Do you think having the
university logo on the
reusable cups are
important?
74%
Would you be interested in a
pledge program, where
students can pledge to a
sustainability ini:a:ve/
commitment in exchange for
a free reusable cup?
Figure 15: Responses from University Sustainability Offices
27. 27
3.3 Regulation and Licensing
3.3.1 Collegiate Licensing Company
The Collegiate Licensing Company (CLC) is partnered with over 200 universities through-
out the United States, providing a common application for the use of a variety of uni-
versity trademark licensing programs. Each license, however, does not allow use of lo-
gos from all 200 universities but a selection based on the applicant’s preferences. (25)
Based on a simple cost analysis conducted by KeepCup Consulting, KeepCup should ob-
tain the license if the company is confident that at least 3200 KeepCups can be sold to the
universities within the next year. Based on our research of competitors’ on-campus sales
figures, KeepCup would need to expand into at least 6 universities in order to cover the
licensing costs. Detail of this analysis is shown in Table 3 below.
Plas%c 12oz 30 cups 240 cups 500 cups 1000 cups
Selling price
(per cup)
$7.30 $6.90 $6.70 $6.40
Profit $4.90 $4.50 $4.30 $4.00
Break-Even 2606 cups 2867 cups 3015 cups 3187 cups
Table 3: CLC Licensing Cost Analysis
KEY TAKEAWAYS
2.2
• Barnes & Noble university stores have the means to reach to students across the U.S.
• KeepCup can sell its products to students without the need of licensing.
• Process for applica@on for KeepCup to be sold in B&N stores is straighAorward.
• There are many factors to consider when approaching B&N:
- large company with significant bargaining power
- similar products such as travel mugs, tumblers, and Starbucks reusable cups
• Offering KeepCups to residen@al halls at wholesale prices, branded with their own logos,
has generated considerable sales in the Australian university market. However in the
U.S. there is the need to obtain the required licence.
• American university students are more disposed to living on campus than Australian’s
with the great majority of students living in residen@al halls and dorms houses
• The larger Greek fraterni@es and sorori@es have chapters in almost every campus across
the country and present an avenue for entry on a na@onal scale.
• There over 123 fraterni@es and sorori@es with over 9 million members across the U.S.
• Most offices are interested in reusable coffee cup campaigns, some
already have those campaigns in place.
• Pledge programs are generally well received.
• Entry via sustainability offices would most likely require CLC
licensing. KEY TAKEAWAYS
3.2
28. 28
3.3.2 Licensing Required for Residential Halls and Student Clubs
In the U.S. university market, licensing is required for the branding of products with any
organisation’s logo, including those of residential halls and student clubs. (26) Fortunately,
most of these licenses can be obtained through online applications and frequently do not
involve a substantial initial outlay. (26)
Residential Halls
At most American universities, residential halls are grouped under one umbrella associa-
tion, such as the RHA at Portland State University which is the governing body representing
University Housing & Residence Life. (27) This type of framework allows the vendor to gain
access to all of the residential halls at that university by applying for only a single license.
The streamlined nature of this process is further augmented by its entirely online applica-
tion process, offered to potential vendors on each Association’s website.
Student Clubs - Fraternities and Sororities
Similarly to the CLC licensing framework employed by numerous American universities, the
Greek community also employs a single licensing distributer who represents the majority of
nationally recognised fraternities and sororities. This sole distributer – Affinity Consultants
– offers a single license that allows the vendor to brand its products with the logos of any
of Affinity’s clients. (28)
However, a number of fraternities and sororities are not associated in the manner described
above and require the vendor to obtain a particular license, which allows them access only
to that club’s logo. For example, the sorority Delta Sigma Theta, a prominent club at Port-
land State University, have their own online vendor application accessible on their national
website. (29)
With the licences acquired, KeepCup would be allowed to introduce the branded Keep-
Cup into the online stores operated by these fraternities and sororities. Comprehensive
research into the Greek community revealed that spending by member students on club
merchandise has significantly increased over the past two decades, where the online out-
lets account for the lion’s share of sales. (30)
KEY TAKEAWAYS
2.2
• The standard license offered by the collegiate licensing company allows KeepCup to be
able to print the logos of 10 universi=es on it’s products.
• Time and required materials for the license applica=on varies depending on the
universi=es requested in the applica=on because the universi=es ul=mately decides on
the approval or rejec=on of the applica=on.
• Costs for the licensing vary due to factors such as royal=es paid to the universi=es.
• According to a very simple cost analysis done by KeepCup Consul=ng, KeepCup needs
to be able to expand into more than 6 universi=es with the licensing in order for
the licensing to be profitable.
• Most licenses for residen=al halls and student clubs can be obtained through online
applica=ons and frequently do not involve a substan=al ini=al outlay.
• In the Greek community there also exists a single licensing distributer who represents
the majority of na=onally recognised fraterni=es and sorori=es, Affinity Consultants.
Whereby a single license allows the vendor to brand its products with
the logos of any of Affinity’s clients.
• Spending by member students on club merchandise has steadily and
significantly increased over the past two decades, where the online
outlets account for the lion’s share of sales. KEY TAKEAWAYS
3.3
29. 29
4. Recommendations
4.1 Future Strategies in the Australian University Market
The results and findings section outlines the need to improve two areas in order to increase
sales in the Australian university market: brand awareness and business relationships. This
section presents an overarching strategy that addresses these two areas.
Depicted below in Figure 16 is a timeline outlining our action plan for the Australian univer-
sity market, arranged into three key phases spanning one academic year.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
PHASE 1
O-Week Booth:
Clubs & Society days
Carnival Days
PHASE 2
PHASE 3
Cafes and Sustainability Offices:
Adver6sements in Cafes
Discounts in cafes
Reuse HQ
ResidenMal Halls and
Formal Events:
End-year gi?
Club’s Annual Ball
Building physical
presence on campus
Building rela6onships, physical
and online presence
Building rela6onships with
halls and student clubs
Figure 16: Timeline of Action Plan for Australian University Market
4.1.1 Phase 1: O-Week and Advertising
The focus on the first phase is to improve brand awareness. This is an area that can be
best addressed at the start of the academic year when students arrive at university for
their Orientation Week (O-Week).
1. O-Week booth; Many universities at the beginning hold orientation weeks which is a
fantastic opportunity to engage with students and create brand awareness. We recom-
mend setting up a KeepCup booth with the purpose of:
● Offering KeepCups for sale, potentially as part of a Freshman Kit
● Delivering KeepCup’s sustainability message
● Promoting the KeepCup brand.
Setting up a booth at the University of Melbourne, for example, comes at a cost of $1,600
onClubs&SocietydaysduringO-Week,whichattractover7000studentsadaytocampus.
2. Offering free KeepCups to O-Week guides
● For O week the respective student unions rely in senior students to volunteer to run
introductory campus tours for new students.
● KeepCup recommends partnering with student unions to give KeepCups branded
with the university logo as a gift to tour guides.
● Students see tour guides with the product and are introduced to the KeepCup brand
by an authoritative figure.
30. 30
3. Posters around campuses:
● Design should clearly depict KeepCup product and brand name.
● Also act to advertise the presence of a booth.
4.1.2 Phase 2: Cafes and Sustainability Offices
After raising brand awareness by creating a physical presence at the university, the
second phase is designed to improve business relationships with Cafes and Sustainabil-
ity offices. This is an attempt to increase sales by engaging clients in new ways. These
include:
1. Improve business relationships with on-campus cafes
Get coffee shops to offer discounts for using KeepCups
● Partner with cafes to make sure discount is communicated to consumer by advertis-
ing on campus: This is done through posters and advertisements which names cafes on
campus at which you get a discount through use of the KeepCup.
● Why will cafes conform? Because cafes who do not provide the discount will miss out
on the positive exposure and the resulting business it generates for their competitors
who did choose to advertise their participation.
Tackle some cafes unwillingness to sell KeepCups
Some cafes’ are unwilling to put forward the capital required for a large order of brand-
ed KeepCups. To tackle this, KeepCup could initially provide the cups at no upfront cost,
which means that if a Cafe did not succeed in selling its allotted number of KeepCups,
those cups could be returned without the cafe incurring any cost.
2. Use Reuse HQ to track and engage with participants in university pledge programs
● Consider partnership with CafePay to solve the issue of tracking the use of the cup:
a SmartBand fitted around a customer’s’ own reusable cup. The chip embedded in the
band will allow customers to pay for their coffees, collect loyalty points and track their
positive environmental impact.
● Utilise Reuse HQ to encourage students to keep their pledges with sustainability offic-
es, particularly in using less disposable cups. Perhaps students who pledge could have
the opportunity to achieve their university-specific achievement badges. For example,
these badges may be rewarded to users who reach the milestone of using their Keep-
Cup a certain number of times via CafePay. Achieving the badges would entitle them
to discounts such as ‘buy one, get one free’, ‘free customisation of your KeepCup’ or
discount codes for their future purchases of KeepCup.
3. Sustainability Offices
● Improving the email order process expressed by some sustainability offices.
● Transforming the ordering process to an online system or cloud procurement prod-
uct such as Coupa. Coupa is a cloud based business to business marketplace which
provides a platform to connect suppliers and buyers while also providing a streamlined
ordering processes and communications links between businesses. (31)
● With cloud technologies such as Coupa, small and medium businesses can access
many of the same technologies as giant multinational companies for a fraction of the
historical price. (32)
31. 31
4. Draw from Kill The Cup campaign and provide discount codes
● Whilst recreating the Kill The Cup campaign is not applicable, the finding that pro-
viding a discount code is a popular incentive for additional purchases can be reused.
● This could be recreated in a campaign where students who recommend KeepCups
to their friends are rewarded for their role in spreading KeepCup’s message of sustain-
ability. We recommend the reward to be a discount on their next KeepCup purchase.
4.1.3 Phase 3: Residential Halls
While Phase 2 addresses business relationships with cafes and sustainability offices,
Phase 3 is targeted at the residential colleges. This is due to the fact that our findings
in this area suggest the KeepCup is best suited as an end-of-year gift to college stu-
dents. Our findings show that a highly effective strategy is to merely approach the
residential hall with the idea.
The order process takes around six weeks, thus implementation of this stage would
need to begin in September in order for the customised KeepCups to be ready for
distribution by November. Therefore, it is recommended for KeepCup to approach the
residential colleges by September.
Once this is implemented, the phase could be extended to the following year as a
means to provide the new residential halls cohort of students with KeepCups as a
welcome package.
32. 32
4.2 Future Strategies in the U.S. University Market
Even though there are many similarities between the Australian and American university
markets, many of the recommendations above cannot be adapted to the US as KeepCup is
not yet in a position to implement them. This is reflected in the report, where the focus in
the Australian market was on analysing previous business relationships and campaigns in
order to recommend future promotional strategies that will further consolidate KeepCup’s
position in the marketplace. In contrast, the focus in the American market was on assessing
potential avenues for entry so as to gain an initial foothold in the university market, where
KeepCup does not yet have a significant presence.
4.2.1 Target Locations and Suitable Universities
Based on the geographical segmentation of coffee culture and sustainability value conduct-
ed in the report, KeepCup Consulting believes these three locations would prove most prof-
itable for KeepCup to expand into: Seattle, San Francisco and Portland. Moreover, these
cities are all located on the West Coast where KeepCup’s distribution centre is also situated,
an advantage with regards to keeping distribution costs low. To further narrow this down
to specific universities, the team cross analysed these locations with CLC clients and has
put forward a shortlist of nine universities which represent the most suitable for KeepCup’s
entry. These locations of these nine universities are shown in Figure 17 below.
4.2.2 Licensing
University students enjoy showing their commitment towards their membered institutions
by purchasing, using and displaying university apparel. The logo gives the students a way
to show their passion towards their chosen institution or club, and is therefore imperative
to include on the KeepCup if the firm wishes to successfully promote the product. In order
to brand the cups, KeepCup would need to obtain licensing, regardless of the chosen ave-
nue. This recommendation is supported by our survey results with U.S. sustainability offices
where 77% maintain that the logo is important, as well as the success of the branded tum-
bler at Barnes & Nobles stores noted in the report.
Western Washington University
CA
OR
WA
University of Washington
Washington State University
Portland State University
Oregon State University
University of the Pacific
University of California, Berkeley
Stanford University
Santa Clara University
Figure 17: The Most Suitable Universities for KeepCup’s Entry in the U.S.
33. 33
As outlined in the report, KeepCup has the option to pursue three different strategies re-
quiring licensing from differing institutions. These are presented in Table 4 below:
4.2.3 Avenues for Entry
KeepCup Consulting believes the overarching entry strategy for the U.S. should also be im-
plemented in phases (see below). While it is difficult to estimate specific time frames due
to limitations in data availability, we have recommended an optimal structure outlining the
sequence of steps in implementation.
Licensing Company Target Sector Distributors
CLC Universi(es B&N Sustainability Offices
Affinity Consultants Fraterni(es & Sorori(es Online Retail
Respec:ve Residen:al Hall
Associa:ons
Residen(al Halls Residen(al Halls
Table 4: Strategies of Entry that Require Licensing
Phase 1 - Barnes & Noble
As previously discussed, Barnes and Nobles operates university stores nationwide,
allowing KeepCup to fully penetrate the university market. Illustrated below are fur-
ther reasons why KeepCup Consulting believes that targeting B&N should be the first
phase of the action plan:
● Market Reach - access to students covering all demographics across the country
● Market Position - natural leader and power to influence consumer behaviour
● Market Depth - capacity to purchase in large quantities
● Expansion Prospects - expand into B&N stores outside of university
● Success of similar B&N products - tumblers and travel mugs
In order to successfully sell the products at B&N labelled with the university logo,
KeepCup will need to obtain CLC licensing.
34. 34
Phase 2 - Sustainable Campus
After successfully integrating the product among university students through sales at
B&N stores, it is recommended that KeepCup push for a formalised sustainability pro-
gram in partnership with the sustainability offices on campus. This recommendation is
drawn from our findings in the Australian university market, coupled with the fact that
sustainability offices in the US are willing and open to partner with KeepCup, as
expressed in our survey results.
While the end goal is to promote a wholly sustainable campus, there are several pre-
liminary strategies to increase the sale of KeepCups. These include but not limited to:
setting up a booth at ‘Orientation Week’ and ‘Green Week’ for the sale of KeepCups
and the promotion of sustainable living; ensuring coffee discounts are offered to users
of KeepCups at university cafes; developing a pledge program as seen at Melbourne
University.
As is the case with B&N, in order to pursue this strategy a CLC license will need to be
obtained.
Phase 3 - Residential Halls, Sororities and Fraternities
In order to increase sales through the online stores of fraternities and sororities, the
product must already exhibit strong popularity among university students. For this
reason, it is recommended that this sector be targeted once the product has gained
traction through the implementation of the previous two phases. The popularity factor
is also crucial when approaching residential halls, as these gifts must contain value in
the eye of the students. This has been evident from the feedback given by residential
colleges in Melbourne University.
Further research has indicated some potential strategies that could be employed by
residential halls to popularise the use of the cup, (33) consequently promoting aware-
ness of the KeepCup brand at the university which is a key factor in driving additional
sales.
● Distributing the cup as part of a Freshman’s Kit which may include information
regarding the sustainable attribute of the product and a discount voucher for a second
cup, as well as a map showing which on-campus cafes offer discounts when using the
KeepCup.
● Providing each student with a branded KeepCup as the only type of cup accepted at
the hall’s cafeteria and coffee corner, so as to prevent students who are not residents
from taking advantage of the hall’s services.
● A more sustainable living approach was introduced in some residential halls, where
the focus was reducing the hall’s carbon footprint by promoting reusable products.
Hence, branded KeepCups were presented to the residents, who were urged to use
their cups frequently.
While this recommendation has also been drawn from the Australian findings, there
lies a key difference in implementation - obtaining licensing. KeepCup will need to
obtain a license from each RHA to sell to residential halls, and a license from Affinity
Consultants to sell to fraternities and sororities. Fortunately, both of these types of
licenses are offered online to potential vendors.
35. 35
4.2.4 Further Recommendations - KeepCup for a Cause
Looking into the future, we believe KeepCup can increase sales by using its product to en-
gage the wider consumer market, through support of topical issues. ‘KeepCup for a Cause’
is all about letting the public express its support for personal causes by purchasing a cus-
tomised KeepCup which makes a bold statement, while lending some financial support to
the chosen cause. This strategy will involve partnering with charities and non-profit or-
ganisations by offering to divert a portion of the revenue from the sale of each cup to the
chosen cause.
For example, KeepCup can look to partner with:
● National Breast Cancer Awareness Inc. to provide pink KeepCups in October, being the
Breast Cancer Awareness Month
● Save The Rainforest Inc. and other related organisations to offer green KeepCups during
environmental conferences
● The World Wildlife Foundation to support the protection of endangered animals, such
as the Red Wolf
● The Red Cross and The Salvation Army to support communities who recently suffered
from natural disasters, for example the Nepalese earthquake or Japanese tsunami
By providing the user with the social benefit of supporting his cause through purchasing a
KeepCup, this strategy has the power to truly capture the hearts and minds of the con-
sumer and increase the product’s popularity substantially.
36. 36
5. Conclusion
With the university sector presenting a major avenue for increasing sales, KeepCup wanted
to not only expand their presence on campuses in Australia, but also break into the U.S.
university sector. As opposed to the Australian market, penetrating the U.S. university mar-
ket would require a different strategy, but the ultimate goal in both sectors is to increase
KeepCup purchases by students.
In order to commence the analysis and draw meaningful conclusions, primary and second-
ary research was conducted into both markets. In the Australian market, the focus was on
previous promotional strategies and business relationships while in the U.S. market, areas
of focus were the evaluation of geographic segments, avenues of entry, and licensing reg-
ulations.
As discussed in section 2, takeaways from business relationships in Australia have highlight-
ed some areas in need of improvement. Among the on-campus cafes, research revealed
that the discounts offered by cafes for using the reusable cup is difficult to standardise,
but managers have shown interest in partnering with KeepCup in marketing campaigns to
widen their reach on campus. Furthermore, KeepCup has a strong relationship with sustain-
ability offices, but there is a need to improve the order process. Lastly, it was realised the
most effective way to obtain further sales from residential colleges was to simply approach
them with the idea of providing the cups as an end-of-year gift to students.
Overall, there is a strong need to develop more frequent and direct correspondence with
end consumers. The University of Melbourne pledge program has demonstrated the need
to touch base with customers after their initial purchase, possibly by revamping Reuse HQ.
The team’s analysis of the U.S. market revealed the need to divide the market and take into
consideration its significantly different coffee cultures. This led to a shortlist of the most
suitable locations for KeepCup’s entry, based on the coffee culture and value its residents
places on sustainability. Furthermore, the main entry strategies explored were through
Barnes & Nobles (B&N), residential halls and student clubs. While B&N has wide reach into
the U.S. university market, it also has significant buyer power, which must be considered
before entering into an agreement. Moreover, residential halls and student clubs offer a sig-
nificant opportunity with a large population of students in the U.S. living on campus. These
avenues, however, require their own licensing.
A key finding in the U.S. market was that the successful sale of KeepCups hinges on them
displaying the specific logo of the target institution. While this would require licensing,
analysis shows that it is imperative to obtain these licenses if KeepCup is truly seeking to
break through into the U.S. university market.
Recommendations generated from research into both the Australian and U.S. university
sectors have been outlined in phases designed to increase KeepCup sales. An action plan
for the Australian university market, spanning one academic year, seeks to increase Keep-
Cup’s presence on campus, while continuing to build business relationships. Beginning in
February, it is imperative to address brand awareness through a targeted approach in Ori-
entation Week across the universities. Following this, phase 2 targets the mid-year period
with particular emphasis on enhancing brand loyalty through improving business relation-
ships. In addition, presence on campus can be increased by revamping Reuse HQ to offer
students uni-specific achievement badges and reward points for KeepCup usage. Lastly,
the final stage targets the residential halls and is centred around the notion that KeepCup
should approach the residential halls with the option to provide students with KeepCups as
an end of year gift.
37. 37
Recommendations for the U.S. university market are focused on establishing distribution
channels and targeting optimal geographic areas and avenues for entry. The three main
locations were universities in Seattle, Portland and San Francisco. Phase 1 outlines the need
to target B&N as first priority, given several factors such as market reach, position, depth,
and the follow-on expansion prospects. While B&N does not require a separate license,
obtaining a CLC license is highly recommended in order to be able to display the targeted
universities’ logos. Furthermore, phase 2 draws on the similarities in the Australian market,
and focuses on the physical presence at university through o-week and green-week. Sim-
ilarly, a CLC license is essential at this stage. Ensuing, the final phase outlines the need to
first build product popularity before targeting student clubs and residential halls. It is only
then that swift action into obtaining the relevant licenses is recommended in order to tap
into the vast market of live-on-campus students.
Finally, the recommendations conclude with a glance into the future, suggesting several key
ways to engage the wider community through the KeepCup. Notably, this includes partner-
ing with charities such as Red Cross to support communities recently suffered from natural
disasters. This can be achieved by diverting a portion of the revenue from the sale of each
customised cup.
Although efforts were made during the research process to collect and present accurate,
unbiased data, there were several limitations in the development of the analysis and rec-
ommendations. Melbourne University was used as a case study for the wider Australian uni-
versity market, leading to a potential oversimplification of recommendations. In addition,
lack of sufficient KeepCup campaigns in the U.S. along with the overwhelming complexity
of the U.S. university market means that aspects of recommendations such as the licensing
cost analysis require further research. However, the report has established an overarching
framework complete with phases of action for increasing sales in both the Australian and
U.S. university markets.
38. 38
6. References
1. Can changing the way you think, change the way you grow? [Internet]. PwC; 2011
May [cited 2015 Oct 10]. Available from: http://www.keepcup.com/docs/media/us/9_
PwC-Private-Business-Barometer-IX-KeepCup.pdf
2. Australian Education Network. Student Numbers at Australian Universities. [Inter-
net]. Australianuniversities.com.au c2015 [cited 2015 Oct 10]. Available from: http://www.
australianuniversities.com.au/directory/student-numbers/
3. Stone N. Comments on: “Bluestone Lane, inspired by the world renowned coffee
culture found in Melbourne Australia” 2015 [cited 2015 Sep 28]. In: What is Melbourne Cof-
fee Culture and Why is it Special? [Internet]. Available from: https://www.bluestonelaneny.
com/blog/what-is-melbourne-coffee-culture-goodfood/
4. Herbert DR. The University of Melbourne KeepCup Report 2014. University of Mel-
bourne, Melbourne, Australia, 2014 Oct 01 [cited 2015 Oct 10].
5. Comments on: “KeepCup Introduces Reuse HQ” 2014 Dec 09 [cited 2015 Oct 10]. In:
KeepCup[Internet].Availablefrom:http://www.keepcup.com.au/news/2014/12/100-keep-
cup-introduces-reuse-hq
6. Reuse HQ [Internet]. Melbourne: KeepCup; 2014 Dec 09 [updated 2015 Oct 01; cit-
ed 2015 Oct 10]. Available from: http://reusehq.keepcup.com/
7. Yohn D. Great Brands Aim for Customers Hearts, Not Their Wallets [Internet]. Forbes;
2014 Jan 08 [cited 2015 Oct 10]. Available from: http://www.forbes.com/sites/onmarket-
ing/2014/01/08/great-brands-aim-for-customers-hearts-not-their-wallets/
8. Brand Recognition [Internet]. Alberta: Investopedia; [cited 2015 Oct 10]. Available
from: http://www.investopedia.com/terms/b/brand-recognition.asp
9. Coffee Statistics [Internet]. Washington: E-Imports Espresso Business Solutions [cit-
ed 2015 Oct 15]. Available from: http://www.e-importz.com/coffee-statistics.php
10. Share of coffee consumption in the United States in 2015, by location [Internet].
National Coffee Association; 2015 Feb [cited 2015 Oct 15]. Available from: http://www.
statista.com/statistics/250148/us-coffee-consumption-by-location/
11. Olsen NL. Caffeine Consumption Habits and Perceptions among University of New
Hampshire Students. New Hampshire: University of New Hampshire 2013 Mar [cited 2015
Oct 15]. Available from: http://scholars.unh.edu/cgi/viewcontent.cgi?article=1102&con-
text=honors
12. CNBC. America’s Most Caffeinated Cities [Internet]. c2011 [cited 2015 Sep 20]. Avail-
able from: http://www.cnbc.com/2011/09/22/Americas-Most-Caffeinated-Cities.html
13. Travel + Leisure. America’s Best Coffee Cities 2013 [Internet]. [cited 2015 Sep 20].
Available from: http://www.travelandleisure.com/slideshows/americas-best-coffee-cit-
ies-2013
14. En.ilovecoffee.jp. America’s Best Coffee Shops - I Love Coffee [Internet]. c2015 [cit-
ed 2015 Sep 20]. Available from: http://en.ilovecoffee.jp/posts/view/69
15. Caffeineinformer.com. The Most Caffeine Addicted Country [Internet]. 2015 [cit-
ed 2015 Sep 20]. Available from: http://www.caffeineinformer.com/the-most-caffeinat-
ed-country
16. The Daily Meal. The 10 Best Cities for Coffee in America [Internet]. [cited 2015 Sep
20]. Available from: http://www.thedailymeal.com/travel/10-best-cities-coffee-america
39. 39
17. Thompson C. The 15 most sustainable U.S. cities [Internet]. Grist. 2009 [cited 2015
Sep 20]. Available from: http://grist.org/article/2009-07-16-sustainable-green-us-cities/
full/
18. MNN - Mother Nature Network. Top 10 green U.S. cities [Internet]. 2015 [cited 2015
Sep 20]. Available from: http://www.mnn.com/health/allergies/photos/top-10-green-us-
cities/1-portland-ore
19. Arcadis. Sustainable Cities Index 2015. [Internet]. [cited 2015 Sep 20].Available
from: https://www.arcadis.com/media/E/F/B/%7BEFB74BBB-D788-42EF-A761-4807D69B-
6F70%7D9185R_Arcadis_whitepaper_2015.pdf
20. We Support and Celebrate [Internet]. Barnes and Noble College [cited 2015 Oct 20].
Available from: http://www.bncollege.com
21. One Less Cup [Internet] Wollongong: University of Wollongong, Coffee for a Cause
2012 campaign and One Less Cup 2013 initiative. [cited 2015 Oct 15]. Available from: http://
www.uow.edu.au/about/environment/onelesscup/index.html
22. Collins E, Greek Life Attraction For Prospective Students [Internet]. The Times-Del-
phic,2014April6[cited2015Oct15].Availablefrom:http://timesdelphic.com/2011/04/06/
greek-life-attraction-for-prospective-students
23. Ferris S, A Deeper Look At The Cost Of Greek Life [Internet]. The GW Hatchet, 2013
Sept 15 [cited 2015 Oct 15]. Available from: http://www.gwhatchet.com/2013/09/15/
greek-life-costs/
24. Registry of listed Fraternities and Sororities in North America [Internet]. Greek Rank:
2015 [cited 2015 Oct 15]. Available from: http://www.greekrank.com/list/
25. LicenseApplicationGuide[Internet].Atlanta:CollegiateLicensingCompany[cited2015
Oct 15]. Available from: http://www.clc.com/getmedia/199ccae4-23e7-4d29-b593-d28db-
253dea8/CLC-License-Application-(Standard-Local).aspx
26. The Business of Greek Life: Fraternity and Sorority Merchandise, Trademarks, and
Licensing [Internet]. [cited 2015 Oct 15]. Available from: http://www.qualitylogoproducts.
com/blog/greek-life-fraternity-sorority-trademarks-licensing/
27. Residential Hall Association (RHA) [Internet]. Portland State University. [cited 2015
Oct 15]. Available from: http://www.pdx.edu/rha/about-us
28. Licensing, Products, and Clients, Affinity Consultants Inc. [Internet]. [cited 2015 Oct
15]. Available from: https://greeklicensing.com/clients
29. Vendor List: Process for Obtaining More Information and Seeking a License [Inter-
net]. Delta Sigma Theta Sorority Inc. [cited 2015 Oct 15]. Available from: http://www.del-
tasigmatheta.org/archive13/merchandise.htm
30. Jacob P, Online Outlets Leading growth in Greek Merchandise [Internet]. The Huff-
ington Post, April 6, 2014. [cited 2015 Oct 15]. Available from: http://www.huffingtonpost.
com/news/greek-life/online-outlets/hr87
31. Savings-As-A-Service [Internet]. San Mateo: Coupa; [cited 2015 Oct 18]. Available
from: http://www.coupa.com/why-coupa/
32. Comments on: “Lessons on Technology and Growth from Small-Business Leaders”
2015 [cited 2015 Oct 18]. In: BCG Perspectives [Internet]. Available from: https://www.
bcgperspectives.com/content/articles/technology_software_globalization_ahead_curve_
lessons_technology_growth_small_business_leaders/?chapter=2
40. 40
33. Green Residence Halls Are Here: Current Trends In Sustainable Campus Housing,
The Journal Of College And University Student Housing, Vol 36 no. 1, 2009 May. [cited 2015
Oct 15]. Available from: http://dcp.ufl.edu/files/fa69e3f2-c374-4f64-9.pdf
34. Timelines and Costs [Internet]. Atlanta: Collegiate Licensing Company [cited 2015
Oct 15]. Available from: http://www.clc.com/Licensing-Info/Timelines-and-Costs.aspx
44. 44
Appendix 2 - Cafe Interview Question Guideline (Semi- Struc-
tured)
1. Have you heard of the KeepCup?
2. How often do customers bring in a KeepCup?
3. Do your baristas have any issues when customers bring their KeepCups in?
4. Do you have any existing or past relation with the firm? i.e. have you partnered with the
firm with regards to its product in your establishment?
If No, jump to question 11
4. What was the campaign/agreement you were involved in?
5. Did you advertise or promote it? Or did someone else?
6. Do you believe the relation has helped your business? If so, how? And if not, how can it
in the future?
7. Did you notice a reduction in paper cups? Did your business save money from this? - did
you quantify this?
8. Would you be interested in a follow-up promotional campaign? If so, what type of pro-
motion? (offer examples- such as putting advertisements for KeepCup in store)
9. Would you be open to providing a financial incentive for using the KeepCup at your es-
tablishment, such as a 10 cents discount on any coffee?
10. How would you characterize the relationship you had with the firm? Unfruitful, benefi-
cial or successful?
11. Would you be open to partnering with KeepCup on a campaign supporting sustainabil-
ity?
12. Would you still be interested if it required your café to provide a financial incentive for
using the product? (see examples above)
13. Would you be open to having the product for sale at your café?
14. What do you like about the KeepCup? How do you think the product can be improved?
46. 46
Appendix 4 - B&N Order Process:
The process of getting a product like the KeepCup into Barnes & Noble university book-
stores is straightforward: send a product sample as well as an order form including quotes
for different quantities to the Barnes & Noble university headquarters. Barnes & Noble will
then reply with a decision about whether they are interested in ordering the product. Sup-
pliers like KeepCup would receive their order fees while Barnes & Noble will then price the
product at a premium for sale. This represents an easy and effective way for keepcup to sell
to a large segment of the market.
The advantageous aspect of selling through the Barnes & Noble university bookstores is
that the chain does not require licensing to sell the general product in its stores. This means
that no licensing will be required as long as no logos are printed on the KeepCups. The cafes
within the Barnes & Noble stores however are Starbucks cafes, meaning that the KeepCup
cannot be sold there. However, they would be able to be sold throughout the Barnes &
Noble stores.
Appendix 5 - U.S. Sustainability Offices Survey
Survey Questions
Yes/No Questions (28 responses)
1. Have you considered campaigns involving reusable coffee cups? If no, would you be in-
terested in such an initiative? Yes/No
2. Do you think having the university logo on environmentally-friendly products is import-
ant? Yes/No
3. Would you be interested in the idea of a pledge program, where students can pledge to
a sustainability initiative in exchange for a free reusable coffee cup? Yes/No
Open-ended (7 responses):
1. What would you guys look for when considering to invest in an environmental campaign?
2. Do you actively partner with any uni stores in promoting environmentally-friendly prod-
ucts?
3. What initiatives have you carried out in making sure the university distributes environ-
mental friendly products? (e.g. on orientation, events, uni stores)
Response from Northwestern University (response to open-ended):
This is Christina whom you spoke with on the phone. Thanks for the email!
1) Our office has worked on an initiative to reduce bottled water waste and promote re-us-
ability, but we haven’t done anything specifically focused on coffee cups. We do work with
Northwestern Dining to promote a discount customers can receive when they do use reus-
able cups, though. I think an initiative to promote reusable coffee cups would be cool here,
whether it’s taken on by our office or a student group. Right now I don’t think our office has
the manpower to launch it, so it’d probably have to fall with the students.
47. 47
2) No -- we try to educate students/customers about sustainable purchasing, but don’t
have direct partnerships with our campus stores or vendors to make sure what’s being sold
is sustainable. Lots of times that’s because we have outside vendors (Starbucks, Dunkin
Donuts) on campus, so we don’t have direct say over what they provide because they’re
a franchise. We do occasionally work with our Purchasing department on ad hoc projects
related to purchasing.
We don’t have a say over everything that’s sold with our trademark at our stores, although
we do supply some sustainability merchandise in our stores (reusable water bottles with
our sustainNU brand on it). We’ve made sure that certain items with the university trade-
mark are environmentally friendly, but not in our stores -- mostly as giveaways at orien-
tation. For instance, this year we’re working with our student government and university
bookstore, who normally give out t-shirts to incoming freshmen, to use a recycled content
sustainable cotton option instead.
With Purchasing, we mainly look at contracts we have with our vendors to determine where
we can opt for more sustainable practices, particularly in delivery. So for instance, NU and
a couple other schools are negotiating a contract with Office Depot that would ensure the
schools get all their supplies delivered in reusable totes, which would greatly minimize our
packaging waste. We’ve also been involved in setting up a contract with a scientific supplies
company that will include pipette, glove, and lab coat recycling as part of our agreement
with them. Our interactions with Purchasing mainly take that route right now, but we might
look to do more collaboration with them in the future, for instance by strengthening Pur-
chasing’s commitment to environmental sustainability in its policies or requiring purchasing
of sustainable materials, like recycled content paper.
3) We’d look for the perceived impact -- are the eventual payoff/reduction/savings worth
the time to invest in this project? A big concern is also manageability, as our office is only
3 people strong, which limits the campaigns we can take on. Most campaign-like initiatives
are run by students with support from our office, so I think any more environmental cam-
paigns that come our way would have to take on that same model.
Appendix 6 - Collegiate Licensing Company
The standard CLC license is one type of licensing intended for well-established companies
with an established financial and selling history. Grant of this license will allow KeepCup to
put university logos onto its products, making KeepCup a more attractive product for uni-
versities and students in the U.S.
The process for the application of this license takes a minimum of two months and varies
depending on the rate at which KeepCup responds to document requests from CLC. The
average application fee, for a standard 10 universities, is $12,875. (34) This figure depends
on a variety of factors such as royalty fees demanded by each university as well as liability
insurance required. Although CLC is the representative licensing company for the universi-
ties, each university ultimately gets final approval on the licensing application.
52. 52
Appendix 8 - Data Collection Plan
KeepCup Consulting
Data Collection Plan
Olivia Kong 764970
Krysten Gandhi 639998
Raviv Bull 615380
Roy Ho 626675
William Haveckin 638743
53. 53
How can
KeepCup
Increase
sales in the
University
market?
2
1
1.1
Increase sales
in the
Australian
University
market.
2.1
Increase
sales in the
American
University
market.
1.1.1 Brand
1.1.2 Relationships
2.1.2 Geographic
Expansion
2.1.1 Brand
1.1.1.1
Awareness
1.1.1.2 Loyalty
1.1.1.3 Equity
2.1.2.2
Customer Base
1.1.2.1
Potential
1.1.2.2 Existing
2.1.1.1
Awareness
2.1.1.2 Loyalty
2.1.1.3 Equity
2.1.2.1
Regulation
Can brand awareness be
improved to increase sales in
Australia?
Can brand loyalty be improved
to increase sales in Australia?
Can existing relationships be
improved to increase sales?
Can potential relationships
increase sales?
Can brand equity be improved
to increase sales in Australia?
Where in the US is the best
customer base to target?
What type of regulations pose
the smallest barriers to entry?
Can brand awareness be
improved to increase sales in
the US?
Can brand loyalty be improved
to increase sales in the US?
Can brand equity be improved
to increase sales in the US?
KeepCup Consulting Logic Tree
54. 54
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source Data Collection Method
1.1.1.1 How can brand
awareness be
improved to
increase sales in
Australia University
sector?
Ø What level is brand
awareness at?
Ø To what extent does
improving brand
awareness increase
sales?
Ø Australian
university students
and employees.
Ø Frequent cafe
goers.
Primary Research
Surveys, semi-structured
interviews, user engagement
outlets and social media channels.
Secondary Research
Reports on KeepCup
1.1.1.2 How can brand
loyalty be improved
to increase sales in
Australia university
sector?
Ø What level is brand
loyalty at?
Ø To what extent does
improving brand
loyalty increase sales?
Ø Australian
university students
and employees.
Ø Frequent cafe
goers.
Primary Research
Surveys, semi-structured
interviews, user engagement
outlets and social media channels.
Secondary Research
Reports on KeepCup
1.1.1.3 How can brand
equity be improved
to increase sales in
Australia University
sector?
Ø What level is brand
equity at?
Ø To what extent does
improving brand equity
increase sales?
Ø Australian
university students
and employees.
Ø Frequent cafe
goers.
Primary Research
Surveys, semi-structured
interviews, user engagement
outlets and social media channels.
Secondary Research
Reports on KeepCup
1.1.2.1 How can potential
relationships
increase sales?
Ø What opportunities are
there to construct new
relationships?
Ø How much will these
potential relationships
impact sales?
Ø Cafes managers/
owners, student
clubs and societies
which have not
been previously
approached.
Primary Research
Semi-structured Interviews and
open ended questionnaires
KeepCup Consulting Data Collection Table
55. 55
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source Data Collection Method
1.1.2.2 How can
existing
relationships be
improved to
increase sales?
Ø What relationships currently
exist?
Ø How much will improving
these relationships increase
sales?
Ø Partnered cafes
and University
Sustainability
departments
Primary Research
Semi-structured Interviews and
open-ended questionnaires.
2.1.1.1 How can brand
awareness be
improved to
increase sales
in the US?
Ø Should brand awareness be
developed differently in the
US?
Ø What level is brand
awareness at?
Ø To what extent does
improving brand awareness
increase sales?
Ø US university
representatives
Ø US university
vendors
Primary Research
Semi-structured phone interviews,
e-mails.
Secondary Research
Past advertising campaigns
created by KeepCup (e.g. Kill the
Cup).
2.1.1.2 How can brand
loyalty be
improved to
increase sales
in the US?
Ø What level is brand loyalty
at?
Ø To what extent does
improving brand loyalty
increase sales?
Ø US university
representatives
Ø US university
vendors
Primary Research
Semi-structured phone interviews
and e-mails.
Secondary Research
Past advertising campaigns
created by KeepCup (e.g. Kill the
Cup).
2.1.1.3 How can brand
equity be
improved to
increase sales
in the US?
Ø Should brand equity be
developed differently in the
US?
Ø What level is brand equity
at?
Ø To what extent does
improving brand equity
increase sales?
Ø US university
representatives
Ø US university
vendors
Primary Research
Semi-structured phone interviews
and e-mails.
Secondary Research
Past advertising campaigns
created by KeepCup (e.g. Kill the
Cup).
KeepCup Consulting Data Collection Table
56. 56
Ref.
Inquiry
Question:
Data Type/Information
Required
Data Source
Data Collection
Method
2.1.2.1 What problems does
regulation pose to
entry?
Ø What are the licensing
costs?
Ø Which universities
require licensing?
Ø What is the best entry
strategy into
universities?
Ø Collegiate Licensing
Company (CLC)
Ø University Sustainability
Offices
Ø University Campus Stores
Ø Student Union and
Societies
Primary Research
Semi-structured phone
interviews and emails.
Secondary Research
Licensing websites
2.1.2.2 What locations for
KeepCup are most
suitable for KeepCup
to expand into?
Ø Where in the US will
Keep Cup's message of
sustainability resonate
the most?
Ø Where in the US is
coffee consumption the
highest?
Ø Reports conducted on
Coffee Culture in the US
Ø Research conducted on
relative sentiment
regarding sustainability by
location
Secondary Research
Research papers and
forums.
KeepCup Consulting Data Collection Table
