Coffee Festival 2000 For: International Coffee Orgnization Date: March 8, 2003 Content Market Situation Strategic Thinking on Festival 2000 Project Scope Off-line Support and Promotion Market Situation The coffee market in China is still at an embryonic stage, but there is a growing interest in all forms of coffee drinking. However, around 85% of consumer demand is for soluble coffee, especially in the form of coffee mixes. The awareness is high, but average consumption is low; heavy user is only few. It’s more appropriate to make generic promotion than normal competition “brand versus brand”. Market Situation Although there is a high level of awareness of coffee in big cities such as Beijing and Shanghai, knowledge of coffee is limited and many potential consumers have never or rarely tasted coffee. There is negative perception about coffee: it’s “bitter” taste, bad for the digestion and keeping awake at night. Lack of the positive coffee knowledge is key barrier for China coffee consumption. Market Situation Cognition of coffee in China is typical western drink. Coffee indicates modern lifestyle, which deeply influences young fashion-conscious Chinese consumers. Positive perception of coffee in traditional Chinese’s mind includes: energized, which can bring brilliance feeling like different from common indicate happy and active life Young fashion-conscious Chinese will be the target audience, and lifestyle and culture will be the emphases. Market Situation After two years promotion, the Coffee Festivals have become established events. The idea of the coffee culture has captured the imagination of the "intelligentsia" and of many actual and potential consumers in China. More companies, and coffee shops, bars and restaurants are involved in this annual event. It’s time to expand and embed the idea of the coffee culture to the daily life of Chinese. Strategic Thinking about Festival 2000 Discover Key Objective Strategic Thinking about Festival 2000 Solution of Key Objective More preference More Association Use on More Occasions Know More Benefits Strategic Thinking about Festival 2000 Why use internet The internet users match with coffee’s actual and potential consumers.(Young, active, well educated, and strong purchasing power) Image of internet is modern and western, which is similar with image of coffee life in China. Life in internet is virtual, and possible to build exciting experience. Web site could be permanent channel for future communication and promotion.