What are the differences between different price points of coffee?
As a trendy drink that is deeply loved by consumers, coffee is also a "power bank" for countless workers, and has gradually become an indispensable part of unlocking the rapid development of urban consumption. With the scale, sophistication and branding of Yunnan coffee planting base, freshly ground coffee has gradually become popular. Especially for people who work in the city, the refreshing effect of coffee and the anti-fatigue effect are indispensable.
As we all know, coffee beans are indispensable for a coffee shop, and the source of coffee beans, how to roast and process, and how barista makes them all test the ability of a coffee brand. So, what is the difference between different price points, is it just the coffee beans?
Market research discoveries
According to the "2023 Coffee Industry Development Status and Development Analysis Report", China's coffee industry is developing rapidly. From the perspective of consumption, compared with mature coffee consumption countries, China, as an emerging force in coffee consumption, has a rapid growth in coffee bean consumption, with a compound growth cost of up to 12.5%, and the gap with developed countries is narrowing, and the future development potential is also huge.
The above survey summary shows that among the 12 coffee shop brands, among the 12 mainstream coffee brands, all coffee is made with freshly ground coffee beans based on American and latte series. Even FamilyMart and 711 have long since changed, from instant brewed coffee to freshly ground coffee from a coffee machine. And the raw materials used, whether single beans or blended beans, are mostly Arabica coffee beans. However, the Arabica beans used in each coffee brand store are not necessarily the same type or origin, because Arabica coffee beans refer to one type of bean. Therefore, Arabica coffee is not the same as good coffee, Arabica coffee accounts for about 75% of the world's coffee production, and the quality gap is relatively large, some good and some bad. And the Arabica coffee beans produced from different origins will have different flavors. Therefore, among the 12 mainstream coffee brands, one of the reasons for the difference in price is most likely due to the difference in the origin and type of coffee beans selected.
Coffee bean varieties can now be classified into three main varieties: Arabica, Robusta and Liberia. The largest market share is Arabica and Robusta, and Liberia is a relatively niche variety. The most obvious feature of Arabica coffee beans is that the groove in the middle of the bean is in the shape of a wave. The caffeine content is about 1.2-1.7%, and the common cultivation areas are Brazil, Colombia, Ethiopia, etc.
In mainland China, coffee beans are mainly produced in Yunnan. And Yunnan small-grain coffee - Arabica coffee beans are famous all over the world due to Yunnan's unique climatic conditions. Yunnan's high altitude, low latitude, large temperature difference between day and night, high-quality geographical and natural conditions are very similar to Colombia, and the coffee produced is mellow and fragrant. It has a fragrant but not strong, strong but not bitter, and can also have a slight fruity flavor characteristics of coffee beans. Robusta accounts for about 20% of the world's coffee sales, and is often used as an ingredient in Italian blends and is used in industrial production of instant coffee, canned coffee, and coffee liquid. The shape is relatively round and short, the particles are small, and the middle groove is straight. The caffeine content is high, and the phlenate content is about 1.7-3.7%. The flavor is bright and strong, the aroma is intense, and the sourness is not too obvious. It is generally produced in India, Vietnam and other countries. Liberian beans, on the other hand, are not often used due to their monotonous flavor, and are commonly grown in African areas such as Liberia and Ivory Coast.
Among the 12 popular coffee shop brands, some coffee shops make coffee with SOE beans, single beans and blended beans, while Starbucks chooses to use blended beans for coffee in the store. Single product coffee beans are made from a single coffee bean from the place of origin, and are generally drunk without milk or sugar, mainly for hand pouring. Whereas, SOE coffee beans refer to a single-origin espresso. To put it simply, it is to make the roast of single beans a little darker, which is the abbreviation of Single Origin Espresso. On the other hand, there is the Espresso Blend, which is a blend of coffee beans.
The roast is generally above medium, with more burnt aromas, which reduces the acidity of the single coffee. Coffee roasting refers to the heating of green coffee beans to promote a series of reactions inside and outside the coffee beans. In this process, a variety of flavors such as sour, sweet, bitter, and other flavors of coffee are generated, forming body and tone, and the process of transforming green beans into dark brown mature beans. Not only are there differences in the roasting degree of single beans, SOE beans and single beans, but Cudi Coffee, Peet, and Peet's Coffee have specially set different roast levels of coffee in the American and Latte series, so that even the classic American and latte can have different flavors.
The irresistible "dream linkage"
Of course, it's not just the difference in coffee beans that makes the price so different between brands, but also because the consumption positioning of each brand is different. Depending on the brand positioning, the needs of the targeted consumer group on specific occasions will also be different.
According to the research summary, the popular coffee shop brands on the market can be roughly divided into three price ranges according to the price. Lucky Coffee is cheap and cost-effective, so it is called the "Honey Snow Ice City" in coffee by many people, and of course, Lucky Coffee is indeed a company owned by Honey Snow Ice City.
FamilyMart and 711 convenience stores have also begun to change from instant brewed coffee to freshly ground coffee from coffee machines, and convenience store coffee is mainly for consumer groups who need fast, convenient and immediate satisfaction. Their demand for coffee is often pre-made with what they want to buy before they enter a convenience store. And it can be used by office workers or people who are doing leisure morning exercises to drink freshly ground coffee directly without going to a coffee shop when selling breakfast.
Cudi Coffee is mainly aimed at consumers who have a high demand for coffee and especially pay attention to quality and comfort. KFC and McDonald's are cost-effective national attribute coffee, which can be drunk while eating fast food, in response to the trend of coffee consumption gradually changing to mass and nationalization.
Luckin Coffee mainly focuses on "high quality and low price". Manner Coffee focuses on the quality of coffee, and has also launched a variety of coffee products to meet the different taste needs of consumers. As a result, it has established its own unique brand image in the market.
M Stand coffee not only focuses on creative tastes, but also the presentation of products. And in the store model, we also pay more attention to the sense of experience, creating a combination of high-end cold colors, minimalism and unique store design style. Peet's coffee embodies the brand's unique charm through its unique roasting and unique coffee-making process.
Starbucks is built around high-quality coffee, a comfortable third place, personalized service, social responsibility, and a brand image to appeal to consumers who are looking for a quality of life.
Costa pays more attention to creating a comfortable and warm consumption environment. Whether it's the interior decoration or the music atmosphere, it will make people feel relaxed and happy, and emphasize product quality and innovation.
The pictures are all from the official account of the coffee brand
In addition to the above differences in brand positioning and brand focus, they also chose a new marketing strategy. The benefits of each brand's different marketing methods also affect the brand's pricing. And today's coffee brands will also innovate and carry out "dream linkage" with other popular fields, and consumers are also checking in and taking photos after consumption.
For example, the launch of innovative flavors, seasonal limited edition styles, and co-branding with various popular IPs. For example, the cartoon Snow King Arrives in Lucky Coffee's co-branded Honey Snow Ice City, Cudi's co-branded TV series Zhen Huan's Biography, KFC Coffee's co-branded game Egg Boy Party, Luckin Coffee's co-branded anime cat and mouse, Costa's co-branded 52TOYS Panda and so on. These innovative co-branding makes it easier to impress consumers. Brands are also actively engaging on social networks and increasing customer stickiness through various activities.
In this way, each consumer can choose the coffee that suits their own and tastes according to their current needs. So which one do you prefer?