Impending World Coffee Shortage Represents Unprecedented Advertising Opportunity
Announcement posted by Imagepak Marketing 31 Mar 2014
Provider of branded promotional products from Perth reveals how little-known advertising technique can take advantage of world coffee shortage.
Perth, WA, 31 March 2014 - Due to drought conditions in South American countries such as Brazil, a worldwide coffee shortage is projected for this year. Coffee prices have already risen 70% in anticipation of the shortage and they could rise a lot higher before they begin to fall again. During the first week of March, coffee prices rose to $2.20 per pound in USD. Arabica beans, from which much of the world’s highest-quality coffee is made, have risen 76% in slightly over two months.
When coffee prices rise, the rise is always passed on to customers. Industry experts predict rises anywhere from ten cents to sixty cents per cup at coffee shops and restaurants, but this flies in the face of standard restaurant economics. Food and beverage costs are based on percentages; an “acceptable” food cost, for example, is 30%. For coffee, markups can be even higher.
With some coffee shops charging as much as $4 per cup, we see a sixty cent rise to be a bit on the conservative side. If the cost of coffee doubles,which is within the realm of possibility, it is difficult to imagine coffee shops only raising their prices by 15%.
Enter the Javacup
The Javacup, which is used for coffee, is a branded promotional product that is given away to promote brand and name recognition. Promotional products are branded with a company’s name, logo and/or message. Then, they are given away. Every time they are used or worn in public, they serve a hybrid between word of mouth advertising and a walking billboard.
The Javacup can be branded in bright colours and is both attractive and useful. Items such as the Javacup not only produce word of mouth advertising to those who see someone using the item, but they make the person using the cup think of the business that branded it every time he or she drinks a cup of coffee.
Javacups are made in one size: 356 ml. They are available in two colours, black and white, but heat bands and lids are available in numerous colours. The bands are 230 mm x 20 mm and the full space can be used for a company logo, company name and a message or slogan. They are made of hard polypropylene and are BPA-free.
The Opportunity
According to Scott Eaton, Owner of ImagePak Marketing, the coffee shortage will cause many to stop buying expensive cups of coffee out and use coffee made at home or at the office. Mr Eaton sees this as a very good opportunity for people who want to use Javacups to advertise their businesses. According to Mr Eaton:
“People are going to continue to drink coffee, but they won’t want to spend up to $6 for a cup. Since nobody wants to drink less coffee, the obvious solution is going to be making coffee at home and at the office. What better way to advertise a business than to give away Javacups? Javacups will allow businesses to get an advertising impression piggy-backed onto gratitude every time the person they give it to drinks a cup of coffee.”
Mr Eaton continued, “Promotional products have proven to be the most effective form of advertising and Javacups are the perfect giveaway right now.”
ImagePak Marketing provides promotional products, screen printing, safety clothing and other personalised products in Perth. For more information, call (08) 92444 111 or visit their website: http://www.imagepak.com.au/.
When coffee prices rise, the rise is always passed on to customers. Industry experts predict rises anywhere from ten cents to sixty cents per cup at coffee shops and restaurants, but this flies in the face of standard restaurant economics. Food and beverage costs are based on percentages; an “acceptable” food cost, for example, is 30%. For coffee, markups can be even higher.
With some coffee shops charging as much as $4 per cup, we see a sixty cent rise to be a bit on the conservative side. If the cost of coffee doubles,which is within the realm of possibility, it is difficult to imagine coffee shops only raising their prices by 15%.
Enter the Javacup
The Javacup, which is used for coffee, is a branded promotional product that is given away to promote brand and name recognition. Promotional products are branded with a company’s name, logo and/or message. Then, they are given away. Every time they are used or worn in public, they serve a hybrid between word of mouth advertising and a walking billboard.
The Javacup can be branded in bright colours and is both attractive and useful. Items such as the Javacup not only produce word of mouth advertising to those who see someone using the item, but they make the person using the cup think of the business that branded it every time he or she drinks a cup of coffee.
Javacups are made in one size: 356 ml. They are available in two colours, black and white, but heat bands and lids are available in numerous colours. The bands are 230 mm x 20 mm and the full space can be used for a company logo, company name and a message or slogan. They are made of hard polypropylene and are BPA-free.
The Opportunity
According to Scott Eaton, Owner of ImagePak Marketing, the coffee shortage will cause many to stop buying expensive cups of coffee out and use coffee made at home or at the office. Mr Eaton sees this as a very good opportunity for people who want to use Javacups to advertise their businesses. According to Mr Eaton:
“People are going to continue to drink coffee, but they won’t want to spend up to $6 for a cup. Since nobody wants to drink less coffee, the obvious solution is going to be making coffee at home and at the office. What better way to advertise a business than to give away Javacups? Javacups will allow businesses to get an advertising impression piggy-backed onto gratitude every time the person they give it to drinks a cup of coffee.”
Mr Eaton continued, “Promotional products have proven to be the most effective form of advertising and Javacups are the perfect giveaway right now.”
ImagePak Marketing provides promotional products, screen printing, safety clothing and other personalised products in Perth. For more information, call (08) 92444 111 or visit their website: http://www.imagepak.com.au/.