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ESTHERS COFFEE: Case Study Esthers Coffee was launched in 2006 as a pilot product for OVerus. Two years later, the formula for success was discovered. For OVerus to be effective, the following conditions must be met: 1. Price. The price must be competitive, preferrably equal. 2. Quality. The quality of the item must be competitive, preferrably equal. 3. Convenience. The product must be located close to the competition, preferrably on the same shelf. In this situation, OVerus becomes the primary distinguishing factor, and market testing supports this conclusion. In July 2008, this strategy was leveraged to achieve the following results in a typical convenience store: ~ Estimated 90% of coffee sales for the month were Esthers. ~ Store manager described Esthers as "booming." ~ Store manager insisted that the Esthers price be raised, because he had, "Five cases of Maxwell House® in the store room collecting dust." TEST DESCRIPTION: Two slots of Esthers regular were located at a convenience store in Ocean Grove, NJ. Prior to product placement, advertising was accomplished by renting a table and selling coffee at a popular local event entitled "The Ocean Grove Flea Market." Although the coffee sold well at the event, the primary goal was to engage with the community, raise awareness about the effort, and inform people that the coffee was available at the Pathway Market. DETAILS: Dates: August 1-Sep 31, 2008 Location: Pathway Market, Ocean Grove, N.J. Offering: Esthers 100% Arabica blend Price: $4.99/12oz. Competition 1: Maxwell House® @ $4.99/11.5oz. Competition 2: Folgers® @ 4.79/11.5oz. |