Local Lion Coffee Shop Marketing Strategy Case Solution

1. Given the existing competition (Dogwood Café, Espresso News, and Higher Grounds) and the relatively more recent competition (Starbucks), how might Davis effectively differentiate his brand? 

Local Lion is positioned as a local coffee brand by Davis. The ingredients for Local Lion were sourced from community vendors, keeping it true to its origin and name “local.” The doughnuts and the coffee glazes were prepared in-house, and the recipes of extracts and syrups were shared by family and friends. However, the competition in the existing market Boone has increased, with major competitors such as Espresso News, Higher Grounds, and Dogwood Café operating in the market. In addition to all, the introduction of Starbucks has made it more challenging to survive in the existing market because the brand is internationally recognized and has more credibility than local brands. 

However, Davis can differentiate Local Lion in the market by promoting its unique selling propositions (USPs). To attract local customers in the community, Davis should market that his coffee brand is local in that the products are made from scratch due to the contributions of local friends and family. Davis should also use this USP to attract foreigners and tourists so that Local Lion provides them with a Boone-originated coffee experience. The coffee business of Davis contributes to Boone’s economy and the community’s economic activities. Moreover, Davis should differentiate his brand by highlighting that from coffee beans production to the final product, all the processes are done by humans and are not automated. 

Additionally, Davis must focus on expanding its social media strategy. Since the target market of the company is college students who are active on social media, engaging content and campaigns to capture their attention will assist Davis in creating brand awareness and brand equity. Moreover, Local Lion should introduce a loyalty program to increase brand loyalty. College students, who are the primary target audience of the company, have limited disposable income. To build their loyalty to the brand, Local Lion should offer loyalty points and discounts to the students more frequently so that they become permanent customers of the brand. 

2. How can Davis position his brand? 

The competition in the existing market Boone has increased with major competitors such as Espresso News, Higher Grounds, and Dogwood Café operating in the market. In addition to all, the introduction of Starbucks has made it more challenging to survive in the existing market because the brand is internationally recognized and has more credibility than local brands. In this situation, Davis should focus on positioning his brand, Local Lion, by mentioning its USPs and differentiating the brand from the competitors to gain a competitive advantage in the market. The competitors in the market, such as Starbucks, Espresso Coffee, and Hatchet Coffee, charge high prices than Local Lion for their products and provide high quality to the customers. To differentiate from these competitors, Davis must focus on a cost differentiation strategy to position his brand differently from the competitors in the market.